ECONOMY OF CYPRUS

CYPRUS ECONOMY

OVERVIEW

The Cyprian economy is small, diversified, and prosperous. Industry contributes 16.5% to GDP and employs 29% of the labor force, while the service sector contributes 62% to GDP and employs 57% of the labor force. Rapid growth in exports of agricultural and manufactured products and in tourism have played important roles in the average 6.8% rise in GDP between 1986 and 1990. This progress was temporarily checked in 1991, because of the adverse effects of the Gulf War on tourism. Nevertheless in mid-1991, the World Bank "graduated" Cyprus off its list of developing countries.

In the '70s, the economy was basically agricultural, with fruits and vegetables, the chief exports. Farming is highly mechanized, and irrigation is widely used. Although Cyprus has been known since prehistoric times for its minerals - copper(which was named after the island's name-cuprum is the latinic word for copper), iron, pyrites, chrome and asbestos once made up more than a third of all exports - mining is no longer economically important.

After the Turkish invasion of 1974, the growth of the construction industry is observed. Textile manufacturing and other light industries have expanded rapidly in recent times in the free part of the island and world wide recognized as Republic of Cyprus. Cyprus has become also a banking, telecommunications and trade center for international corporations dealing with Middle East. Tourism, a major source of foreign exchange throughout the island, has returned to normal and increases rapidly.

NATIONAL PRODUCT

GDP - US$7.2 billion (1993)
GNP - US$7.4 billion (1993)
National Product Real Growth Rate - 6.5% (1992)
National Product per capita - US$12,233 (1993)

INFLATION RATE (CPI- Consumer Price Index)

3.0% (1996)

UNEMPLOYMENT RATE

2.6% (1993)

LABOR

Labor Force - 300,000 (1993)
Organized Labor - 80% of the total

BUDGET

Expenditures - US$2.4 billion (1993)
Imports - US$2.9 billion (1993)
Exports - US$979.5 million (1993)
External Debt - US$1.4 billion (1993)

COMMODITIES

citrus, potatoes, grapes, wine, cement, clothing and shoes

PARTNERS

UK 23%, Greece 13%, Libanon 10%, Germany 5%

COMMODITIES

Consumer goods, petroleum and lubricants, food and feed grains, machinery

PARTNERS

UK 13%, Japan 12%, Italy 10%, Germany 9.1%

INDUSTRIAL PRODUCTION

Growth rate - 0.4% (1991); accounts for 16.5% of GDP Actual - US$924 million (1993)

ELECTRICITY

620,000 kW capacity; 1,770 million kWh produced, 2,530 kWh per capita (1991)

INDUSTRIES

food, beverages, textiles, chemicals, metal products, tourism, wood products

AGRICULTURE

Contributes 6% to GDP and employs 14% of labor force in the south; major crops - potatoes, vegetables, barley, grapes, olives, citrus fruits; vegetables and fruit provide 25% of export revenues

Actual - US$15 million (1993)

EXCHANGE RATE

Exchange Rate [US dollars to Cyprus pounds] - US$2.27 (April, 1995)

CURRENCY

1 Cypriot pound = 100 cents;aprox. equals to 2.2 U.S dollars.

FOREIGN ECONOMIC AID

1993 - US$15 from US
1994 - US$15 from US
1995 - US$15 from US

FISCAL YEAR

calendar year

Well noted in the Cyprus Economy are the high educational standard of the labor force, the labor shortages filled up by foreign workers (5% in 1993 of the gainfully employed), adn Europe absorbs about 57% of exports.

RETURN TO THE CYPRUS ACCESS PANEL

RETURN HOME