The euro area's economy is recovering towards pre-pandemic levels, with economists predicting a positive start to the third quarter despite concerns about the Delta variant. Cyprus's annual growth is forecast at 4.3%, with inflation in line with Europe. Global GDP is expected to grow by 1.8% in the third quarter. The euro area's growth is moderate compared to the US, with inflation rising but not as sharply. The UK's growth is slowing due to supply-chain issues and Covid-19 isolation requirements. Germany's economy is projected to outperform the euro area average. High vaccination rates in Europe are reducing the likelihood of a Delta variant surge.

European secondary data centre markets are poised for growth as the expansion of the five main markets is unsustainable. Demand for edge data centres, which are smaller and closer to urban populations, is increasing. JLL's analysis of the 2020-2021 data centre market revealed a high demand with significant construction pipeline and robust M&A activity. Cloud demand dominated in North America, and despite a global IT spend decline due to the pandemic, a rebound is expected in 2021. Key markets like Amsterdam and Madrid are growing, while challenges in securing urban space and capital expenditure on infrastructure are noted.

Cyprus is emerging as a regional technology and business hub, with data centres like CL8 and CytaGlobal expanding to meet the demand for digital transformation. The island's strategic location at the crossroads of Europe, Middle East, and Africa, along with developments in FTTH and 5G, positions it as an ideal destination for digital presence. The global pandemic has accelerated ecommerce and remote working, increasing the need for data centre services. Invest Cyprus and CEO George Campanellas recognize the economic benefits and potential for foreign tech investments. CytaGlobal's participation in the PEACE subsea cable system and plans for new data centre facilities highlight the growth in this sector. The country's EU membership and safe environment also make it an attractive disaster recovery location for businesses in politically unstable regions.

Andros Karayiannis, an IT consultant with over 50 years of experience, discusses the growing interest in Cyprus data centres due to the country's EU membership and GDPR compliance, offering enhanced data security. He highlights the benefits of cloud services, such as cost savings and reduced need for in-house data centres and personnel. Cyprus data centres also offer business continuity plans for regions with geopolitical issues. Challenges include the high cost of Uptime certification and slow international data connections. The trend towards cloud-based services like Infrastructure as a Service and Software-as-a Service is driving more companies to use data centres.

Stelios D. Himonas, the permanent secretary at the Deputy Ministry for Research, Innovation and Digital Policy, outlined Cyprus's plan to become a hub for ICT companies during an Invest Cyprus conference. The plan includes creating a new incentives framework with four pillars: institutional environment, human capital, infrastructure, and branding Cyprus as a science and tech destination. Initiatives such as the digital nomad visa, EU blue card, and a favorable tax framework aim to attract professionals and companies. The government is also focusing on digital transformation, including e-signatures, eID framework, digital justice system, cloud-first policy, and upgrading telecom infrastructures. A digital services factory and a one-stop shop for businesses are part of the efforts to simplify and digitalize business processes. The national Resilience and Recovery Plan includes over €280 million for digital transition, with additional national funds for ICT projects.

The article discusses the rise of FinTech and InsurTech companies and their impact on the traditional banking and insurance sectors. It highlights the demand for personalized and flexible services, especially through mobile phones. FinTech firms are gaining ground by offering more accessible customer acquisition methods and challenging the dominance of established financial institutions in the $100 trillion payments market. InsurTech companies have also raised significant funding and are innovating in response to changing customer needs. The article notes the growth of peer-to-peer and online lending, particularly in the SME loan market in the UK and the US. It also mentions the potential threat to incumbents from large technology platforms entering the financial services space, leveraging their vast consumer networks to offer banking and insurance products.

Despite recent concerns about a recession in Italy and its potential threat to Europe, the situation is not as dire as some have suggested. The European Central Bank has warned of recession risks, but growth forecasts from Fitch Ratings and the International Monetary Fund remain positive, with Europe expected to see growth of around 1% in the coming year. Philip Lane, the next chief economist at the ECB, believes the growth slowdown in Europe will be limited. Wealth managers like Brad Conger of Hirtle Callaghan are optimistic, citing current resource prices as a reason for positivity. The IMF predicts global growth at 3.5% in 2019, increasing to 3.6% in 2020, with internal demand and employment growth supporting Europe's economy. Trade turbulence and political concerns, including Brexit, have impacted Europe, but FocusEconomics expects growth barriers to ease by year-end. S&P economists predict a 1.6% growth for Europe in 2019, driven by domestic demand. Despite Italy's technical recession, ING Bank economists see strong exports and employment as signs of a potential quick recovery, with improved real disposable income and lower inflation expected to boost private consumption.