Flags of All Countries

Cyprus Economy 2008

Economy - overview: The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for 78% of GDP. Tourism, financial services, and real estate are the most important sectors. Erratic growth rates over the past decade reflect the economy's reliance on tourism, which often fluctuates with political instability in the region and economic conditions in Western Europe. Nevertheless, the economy in the area under government control grew by an average of 3.6% per year during the period of 2000-06, well above the EU average. Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and adopted the euro as its national currency on 1 January 2008. An aggressive austerity program in the preceding years, aimed at paving the way for the euro, helped turn a soaring fiscal deficit (6.3% in 2003) into a surplus of 1.5% in 2007. As in the area administered by Turkish Cypriots, water shortages are a perennial problem; a few desalination plants are now on line. After 10 years of drought, the country received substantial rainfall from 2001-04 alleviating immediate concerns. Rainfall in 2005 and 2006, however, was well below average, making water rationing a necessity in 2007.
GDP (purchasing power parity): $21.4 billion (2007 est.)
GDP (official exchange rate): $21.3 billion (2007 est.)
GDP - real growth rate: 4.4% (2007 est.)
GDP - per capita (PPP): $27,100 (2007 est.)
GDP - composition by sector: agriculture: 2.7% industry: 19.2% services: 78% (2007 est.)
Labor force: 393,000 (2007 est.)
Labor force - by occupation: agriculture: 8.5% industry: 20.5% services: 71% (2006 est.)
Unemployment rate: 3.9% (2007 est.)
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Distribution of family income - Gini index: 29 (2005)
Investment (gross fixed): 20.8% of GDP (2007 est.)
Budget: revenues:: $9.996 billion expenditures:: $9.304 billion (2007 est.)
Public debt: 59.6% of GDP (2007 est.)
Inflation rate (consumer prices): 2.4% (2007 est.)
Central bank discount rate: 5% (31 December 2007)
Commercial bank prime lending rate: 6.74% (31 December 2007)
Stock of money: $4.094 billion note: see entry for the European Union for money supply in the Euro Area; the European Central Bank (ECB) controls monetary policy for the 15 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders (31 December 2007)
Stock of quasi money: $43.93 billion (31 December 2007)
Stock of domestic credit: $52.09 billion (31 December 2007)
Agriculture - products: citrus, vegetables, barley, grapes, olives, vegetables; poultry, pork, lamb; dairy, cheese
Industries: tourism, food and beverage processing, cement and gypsum production, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone, and clay products
Industrial production growth rate: 3.8% (2007 est.)
Electricity - production: 4.52 billion kWh (2007 est.)
Electricity - consumption: 4.151 billion kWh (2006 est.)
Electricity - exports: 0 kWh (2007 est.)
Electricity - imports: 0 kWh (2007 est.)
Oil - production: 0 bbl/day (2008 est.)
Oil - consumption: 57,830 bbl/day (2006 est.)
Oil - exports: 0 bbl/day (2005)
Oil - imports: 55,970 bbl/day (2005)
Oil - proved reserves: NA
Natural gas - production: 0 cu m (2007 est.)
Natural gas - consumption: NA
Natural gas - exports: 0 cu m (2007 est.)
Natural gas - imports: NA
Natural gas - proved reserves: 0 cu m (1 January 2006)
Current account balance: -$2.144 billion (2007 est.)
Exports: $1.495 billion f.o.b. (2007 est.)
Exports - commodities: citrus, potatoes, pharmaceuticals, cement, and clothing
Exports - partners: Greece 21.1%, UK 14.3%, Germany 6.6% (2007)
Imports: $7.84 billion f.o.b. (2007 est.)
Imports - commodities: consumer goods, petroleum and lubricants, intermediate goods, machinery, transport equipment
Imports - partners: Greece 17.7%, Italy 10.2%, UK 9.6%, Germany 9.4%, Israel 6.5%, France 5.4%, China 5.3%, Netherlands 4.1% (2007)
Reserves of foreign exchange and gold: $6.507 billion (31 December 2007 est.)
Debt - external: $26.97 billion (31 December 2007 est.)
Stock of direct foreign investment - at home: $13.36 billion (2007 est.)
Stock of direct foreign investment - abroad: $5.419 billion (2007 est.)
Market value of publicly traded shares: $48.2 billion (2005)
Currency (code): Cypriot pound (CYP); euro (EUR) after 1 January 2008
Exchange rates: Cypriot pounds (CYP) per US dollar -: 0.4286 (2007), 0.4586 (2006), 0.4641 (2005), 0.4686 (2004), 0.5174 (2003)
Economy of the area administered by Turkish Cypriots: Economy - overview: The Turkish Cypriot economy has roughly 30% of the per capita GDP of the south, and economic growth tends to be volatile, given the north's relative isolation, bloated public sector, reliance on the Turkish lira, and small market size. Agriculture and services, together, employ more than half of the work force. The Turkish Cypriot economy grew around 10.6% in 2006, fueled by growth in the construction and education sectors, as well as increased employment of Turkish Cypriots in the area under government control. GDP declined about 2.0% in 2007. The Turkish Cypriots are heavily dependent on transfers from the Turkish Government. Ankara directly finances around one-third of the "TRNC's" budget. Aid from Turkey has exceeded $400 million annually in recent years. GDP (purchasing power parity): $1.865 billion (2006 est.) GDP - real growth rate: -2% (2007 est.) GDP - per capita: $11,800 (2006 est.) GDP - composition by sector: agriculture: 8.6%, industry: 22.5%, services: 69.1% (2006 est.) Labor force: 95,030 (2007 est.) Labor force - by occupation: agriculture: 14.5%, industry: 29%, services: 56.5% (2004) Unemployment rate: 9.4% (2005 est.) Population below poverty line: %NA Inflation rate: 11.4% (2006) Budget: revenues: $2.5 billion, expenditures: $2.5 billion (2006) Agriculture - products: citrus fruit, dairy, potatoes, grapes, olives, poultry, lamb Industries: foodstuffs, textiles, clothing, ship repair, clay, gypsum, copper, furniture Industrial production growth rate: -0.3% (2007 est.) Electricity production: 998.9 million kWh (2005) Electricity consumption: 797.9 million kWh (2005) Exports: $68.1 million, f.o.b. (2007 est.) Export - commodities: citrus, dairy, potatoes, textiles Export - partners: Turkey 40%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited Imports: $1.2 billion, f.o.b. (2007 est.) Import - commodities: vehicles, fuel, cigarettes, food, minerals, chemicals, machinery Import - partners: Turkey 60%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited Economic aid - recipient: under a July 2006 agreement, Turkey plans to provide the area administered by Turkish Cypriots 1.875 billion YTL ($1.3 billion) over three years (600 million YTL in 2006, 625 million YTL in 2007 and 650 million YTL in 2008); Turkey has forgiven most past aid; additionally, the EU pledged financial assistance of Euro 259 million ($388 million) in 2004, which is yet to be disbursed. Reserves of foreign exchange and gold: $NA Debt - external: $NA Currency (code): Turkish new lira (YTL) Exchange rates: Turkish new lira per US dollar: 1.319 (2007) 1.4286 (2006) 1.3436 (2005) 1.4255 (2004) 1.5009 (2003)

NOTE: The economy information regarding Cyprus on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cyprus Economy 2008 information contained here. All suggestions for corrections of any errors about Cyprus Economy 2008 should be addressed to the CIA.