COVID19: Cyprus industries that bucked the trend and how to capitalise on them

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During 2020, the interest in trading on the stock market or investing in different kinds of trading has increased significantly, with apps and online platforms seeing more traffic, particularly from first-time traders.

One of the main reasons for this increase is the fact that people have been at home and able to keep track of the markets. By following current events, including fluctuations in different markets and economies caused by the pandemic, they have been driven to invest in the stock market, foreign exchange market, and commodities market amongst others.

Another reason for this increase is the opportunity to engage in CFD trading, a ‘contract for differences’ instrument. This is a type of trading where the trader doesn’t purchase the underlying asset and instead speculates on its movement in value.

During 2020 when markets have swung wildly and there have been big movements in value for many assets, this has provided great opportunities for traders to make returns on their investments.

CFD trading is an easy way for investors to engage in the markets without having to tie up big sums of money in purchasing underlying assets. As such, it’s getting more popular with starter and casual investors across the world, not just in Cyprus.

 

Uncertainty in the markets

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A lack of certainty in many markets has proved problematic for some investors and traders, but not all. Through clever monitoring of events and economic indicators, combined with the use of forecasting tools, traders can make profits by speculating on whether a particular asset will increase or decrease in value, and by how much.

By leveraging the uncertainty that the pandemic has brought, positive outcomes can be obtained.

But it’s also important to keep your eye on those industries and markets that are performing well. Through studying their trajectories and taking into account events that could impact their value, CFD trading can also be used to increase the chances of a profit.

 

What industries grew in Cyprus?

Cyprus has not been immune to the impact of the COVID-19 pandemic. With an economy greatly dependent on travel and tourism, it’s seen big losses in sectors relating to hotels, food, leisure, and travel.

The country also has a big reliance on foreign investment which has also declined throughout 2021. But it’s not all doom and gloom, some sectors have noted improvements and even growth during these difficult times.

Medical:

Companies offering medical and healthcare services have seen an increase in business over the last year. This includes private healthcare facilities such as hospitals and clinics, as well as pharmacy owners, pharmaceutical importers, importers of PPE and medical equipment, and of course those who import and distribute ventilators and other items used in the treatment of COVID-19. Demand is expected to continue growing and then level off sometime in the middle of 2021.

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Manufacturing:

The manufacturing industry in Cyprus has been something of a mixed bag, depending on what is being manufactured. Due to lockdown, products that would have usually been imported but that could also be produced locally saw an increase. For example, sanitiser, various detergents, cosmetics, and the aforementioned pharmaceuticals made in Cyprus grew in popularity, whereas aluminium, cement, and fabricated metal manufacturing saw a decrease.

Technology:

Cyprus is known for having a strong IT sector. Companies operating in advertising and marketing, financial technology, app and web design, social media, trading, blockchain and cryptocurrency all saw an increase in popularity during the pandemic.

The global crisis saw a big shift in the way we do things – many of us now shop online and are embracing previously underused technology. That has been reflected in the health of this sector in Cyprus.

While the pandemic has wreaked havoc in communities and economies across the world, there are glimmers of hope.

Many industries have invested in adapting to the new climate, and others. have found that their products are in demand. Businesses in Cyprus are no exception and while tourism may be suffering, there is potential for a rebound in several other sectors.