Cyprus’s GDP growth rate has been on a decline, with more recently negative growth rates. My team of reaserchers and I need to find out why, and the potential solutions to improving the GDP in the upcoming years whilst tackling the root cause.
GDP: Downward trend
Evidence for this decline in GDP growth rate is shown through visualising the data. I discovered that the decreasing growth rate is correlated to the increase % dependancy age of old people (65+) in the working force over the years . Hence the working force tend to come from senior workers who have a higher probabilty of retiring, overall affecting productivity and efficiency.
Solution : AUB Mediterraneo
Opening Universities such as AUB campus in Cyprus, to get Lebanese people out of the bad economical state of Lebanon whilst getting their education from Cyprus along with a stronger passport by the end of it. This also allows Cyprus to get a working force coming from the younger more revitalised workers hence improving efficiency and overall GDP.
Validation
The solution is validated by gathering data regarding the average age of the labor force , and noticing if theres a decrease in age range. Also by monitering the GDP, looking for any improvements that is a result of an increase dependancy on our younger labour force.
Further recommendations
Moreover due to the decrease of birth rate seen in the visualisation, I recommend that the government incentivises the locals to reproduce. Through offering assistance allowance for parents with more children.Therefore when old enough to work they can contribute to the GDP. Cyprus’s working age is 15, they can reduce it to 13 to get more efficient workers whilst improving the overall GDP.
