Cyprus Economy: from the All Country Info reference guide to country facts

Cyprus Economy

Cyprus Economy: A summary of information about Cyprus Economy, from government research data as well as independent research and other sources.

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Cyprus: Economy

Economy - overview
Economic affairs are dominated by the division of
the country into the southern (Greek) area controlled by the Cyprus
Government and the northern Turkish Cypriot-administered area. The
Greek Cypriot economy is prosperous but highly susceptible to external
shocks. Erratic growth rates in the 1990s reflect the economy's
vulnerability to swings in tourist arrivals, caused by political
instability on the island and fluctuations in economic conditions in
Western Europe. Economic policy in the south is focused on meeting the
criteria for admission to the EU. As in the Turkish sector, water
shortage is a growing problem, and several desalination plants are
planned. The Turkish Cypriot economy has about one-fifth the
population and one-third the per capita GDP of the south. Because it
is recognized only by Turkey, it has had much difficulty arranging
foreign financing, and foreign firms have hesitated to invest there.
The economy remains heavily dependent on agriculture and government
service, which together employ about half of the work force. Moreover,
the small, vulnerable economy has suffered because the Turkish lira is
legal tender. To compensate for the economy's weakness, Turkey
provides direct and indirect aid to tourism, education, industry, etc.
GDP
Greek Cypriot area: purchasing power parity - $9 billion; Turkish
Cypriot area: purchasing power parity - $820 million (1998 est.)
GDP - real growth rate
Greek Cypriot area: 3.0%; Turkish Cypriot
area: 5.3% (1998 est.)
GDP - per capita
Greek Cypriot area: purchasing power parity -
$15,400; Turkish Cypriot area: purchasing power parity - $5,000 (1998
est.)
GDP - composition by sector
Greek Cypriot area: agriculture 6.3%,
industry 22.4%, services 71.3%; Turkish Cypriot area: agriculture
11.8%, industry 20.5%, services 67.7% (1998)
Population below poverty line
NA%
Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices)
Greek Cypriot area: 2.3% (1998
est.); Turkish Cypriot area: 66% (1998 est.)
Labor force
Greek Cypriot area: 289,400; Turkish Cypriot area: 80,200
(1998)
Labor force - by occupation
Greek Cypriot area: services 66.6%,
industry 23.2%, agriculture 10.2% (1998); Turkish Cypriot area:
services 55.4%, industry 21.6%, agriculture 23% (1997)
Unemployment rate
Greek Cypriot area: 3.3% (1998 est.); Turkish
Cypriot area: 6.4% (1997)
Budget
revenues: Greek Cypriot area - $2.9 billion (1998); Turkish Cypriot
area - $171 million (1997 est.)
expenditures: Greek Cypriot area - $3.4 billion, including capital
expenditures of $345 million (1998); Turkish Cypriot area - $306
million, including capital expenditures of $56.8 million (1997 est.)
Industries
food, beverages, textiles, chemicals, metal products,
tourism, wood products
Industrial production growth rate
Greek Cypriot area: 2.4% (1998);
Turkish Cypriot area: 5.1% (1997)
Electricity - production
Greek Cypriot area: 2.675 billion kWh;
Turkish Cypriot area: NA kWh (1998)
Electricity - production by source
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)
Electricity - consumption
Greek Cypriot area: 2.488 billion kWh;
Turkish Cypriot area: NA kWh (1998)
Electricity - exports
0 kWh (1998)
Electricity - imports
0 kWh (1998)
Agriculture - products
potatoes, citrus, vegetables, barley, grapes,
olives, vegetables
Exports
Greek Cypriot area: $1.1 billion (f.o.b., 1998 est.); Turkish
Cypriot area: $63.9 million (f.o.b., 1998)
Exports - commodities
Greek Cypriot area: citrus, potatoes, grapes,
wine, cement, clothing and shoes; Turkish Cypriot area: citrus,
potatoes, textiles (1998)
Exports - partners
Greek Cypriot area: UK 14.5%, Russia 14.5%, Greece
9.8%, Lebanon 5.5%, UAE 4.9%; Turkish Cypriot area: Turkey 47%, UK
26%, other EU 15% (1998)
Imports
Greek Cypriot area: $3.5 billion (f.o.b., 1998 est.); Turkish
Cypriot area: $374 million (f.o.b., 1997)
Imports - commodities
Greek Cypriot area: consumer goods, petroleum
and lubricants, food and feed grains, machinery (1998); Turkish
Cypriot area: food, minerals, chemicals, machinery (1997)
Imports - partners
Greek Cypriot area: US 12.5%, UK 11.3%, Italy
9.4%, Germany 8.5%, Greece 8.2% (1998); Turkish Cypriot area: Turkey
56.4%, UK 13.5%, other EU 12.2% (1997)
Debt - external
Greek Cypriot area: $1.27 billion; Turkish Cypriot
area: $NA (1998)
Economic aid - recipient
Greek Cypriot area - $17 million (1998);
Turkish Cypriot area - $700 million from Turkey in grants and loans
(1990-97) that are usually forgiven
Currency
Greek Cypriot area: 1 Cypriot pound = 100 cents; Turkish
Cypriot area: 1 Turkish lira (TL) = 100 kurus
Exchange rates
Cypriot pounds per US$1 - 0.5688 (January 2000),
0.5423 (1999), 0.5170 (1998), 0.5135 (1997), 0.4663 (1996), 0.4522
(1995); Turkish liras (TL) per US$1 - 545,584 (January 2000), 418,783
(1999), 260,724 (1998), 151,865 (1997), 81,405 (1996), 45,845.1 (1995)
Fiscal year
calendar year
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