##ly challenging environment, as well as on the cbc's own initiatives, acting proactively and fostering enhancement within the financial sector. linked to this, i would like to briefly provide an overview of the'international headquartering'trend in cyprus. international company headquartering has traditionally been a strategic decision influenced by factors such as tax benefits, access to key markets and infrastructure facilities. 4 / 5 bis - central bankers'speeches in cyprus, foreign direct investments, as a result of the inflow of a large number of foreign companies, contributed to the strengthening of economic activity in 2022. in particular, it has supported the inflow and expansion of operations of companies, mainly in the information and communication technologies sector. the contribution of headquartering to gdp growth has doubled, from 0. 7 percent in 2021 to 1. 3 percent in 2022. however, we should bear in mind that with the rise of the digital era, the emphasis on physical location is waning. talent acquisition, a crucial component for a company's success, is no longer confined by geographical boundaries. this shift is further intensified by the growing number of digital nomads, professionals who operate remotely and are not tethered to a specific location. these professionals prioritize flexibility, connectivity and work - life balance, and as a result organizations are rethinking their traditional operations model in order to attract this pool of global talent. the intertwining of company headquartering strategies, with the allure of remote work opportunities, showcases the evolving landscape of the modern business world. let me now conclude, innovation in the financial sector has become a crucial necessity. it enables contactless banking, it offers financial services'employees the possibility to work remotely, and provides a customer oriented efficient product. undoubtedly, technological advancement comes with challenges and risks. these risks need to be effectively managed and regulated, so that financial sector participants and their customers reap the benefits of such technological advancement. let me assure you of the central bank of cyprus'support to all efforts that point towards the direction of technological advancement and of our readiness to contribute within the framework of our legal mandate. 5 / 5 bis - central bankers'speeches

that of economic growth because of the worsening of the terms of trade. 2. in the labor market, the trend of improvement will be maintained with a private - sectorled increase in the number of persons employed and a fall in the unemployment rate. having said that, the degree of improvement in qualitative terms will be checked somewhat by the feebleness of large businesses in the creation of what are seen as “ decent jobs ” 9. 3. consumer prices are expected to stay on a rising track for quite some time, carrying over from the 3 1 / 2 % level for this quarter. even as the number of persons employed in the private sector increased by a total of 382, 000 running up to october of this year, that of large corporations decreased by 49, 000. demand pressures are being built up from the sustained rise in economic activity and international commodity prices, wages and rental charges are all on the rise. the accelerated upward trend of chinese wages and prices may also act as a cost push factor for domestic prices by way of higher import prices. expected inflation, which has been on the rise since the beginning of this year, will affect prices after some time lag. 4. the current account will retain its underlying surplus but the scale of this surplus is seen to shrink owing to the expansion of imports drawn in by the strengthened recovery momentum of domestic demand. the ratio of the current account surplus to gdp will drop from this year ’ s 3 % level to below 2. 0 % but above 1. 5 % in 2011. 5. these economic forecasts for 2011 are attended by a considerable degree of uncertainty. domestically, there are the geopolitical risks following the north korean attack on yeonpyeongdo. externally, the unknowns include the sovereign debt problems of the euro area, price instability in china, and the direction of the us fed ’ s monetary policy post - qe2. policy tasks 1. while the korean economy will stay on a solid growth track in 2011, political initiatives should be directed toward raising the living conditions of the public at large including the boosting of purchasing power by way of price stability and the creation of “ decent jobs ”, given the persistent gap between public perceptions of the level of economic activity and the actual numbers. 2. great care must be taken to avoid an enfeebling influence on the domestic financial and foreign exchange markets and on real economic activity from the eurozone debt problems, chinese inflation and the fed ’ s monetary