Cyprus:
Economy

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Other pages in this profile of Cyprus:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition 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 preceeding 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)	Definition - World rank and map $21.38 billion (2007 est.)
GDP (official exchange rate)	Definition $21.3 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 4.4% (2007 est.)
GDP - per capita	Definition - World rank and map $27,400 (2007 est.)
GDP - composition by sector	Definition agriculture: 2.7% industry: 19.2% services: 78% (2007 est.)
Labor force	Definition 393,000 (2007 est.)
Labor force - by occupation	Definition agriculture: 8.5% industry: 20.5% services: 71% (2006 est.)
Unemployment rate	Definition - World rank and map 3.9% (2007 est.)
Population below poverty line	Definition NA%
Household income or consumption by percentage share	Definition lowest 10%: NA% highest 10%: NA%
Distribution of family income - Gini index	Definition - World rank and map 29 (2005)
Inflation rate (consumer prices)	Definition - World rank and map 2.2% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 20.8% of GDP (2007 est.)
Budget	Definition revenues:: $9.996 billion expenditures:: $9.304 billion (2007 est.)
Public debt	Definition - World rank and map 59.6% of GDP (2007 est.)
Agriculture - products	Definition citrus, vegetables, barley, grapes, olives, vegetables; poultry, pork, lamb; dairy, cheese
Industries	Definition 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	Definition - World rank and map 3.8% (2007 est.)
Electricity - production	Definition - World rank and map 4.618 billion kWh (2006)
Electricity - consumption	Definition - World rank and map 4.135 billion kWh (2006)
Electricity - consumption per capita	Definition - World rank and map 5,217 kWh (2006)
Electricity - exports	Definition 0 kWh (2005)
Electricity - imports	Definition 0 kWh (2005)
Oil - production	Definition - World rank and map 300 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 56,000 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 70.7 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 0 bbl/day (2004)
Oil - imports	Definition - World rank and map 51,640 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map NA
Natural gas - production	Definition - World rank and map 0 cu m (2007 est.)
Natural gas - consumption	Definition - World rank and map NA
Natural gas - exports	Definition - World rank and map 0 cu m (2007 est.)
Natural gas - imports	Definition - World rank and map NA
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2006)
Current account balance	Definition - World rank and map -$1.514 billion (2007 est.)
Exports	Definition - World rank and map $1.489 billion f.o.b. (2007 est.)
Exports - commodities	Definition citrus, potatoes, pharmaceuticals, cement, and clothing
Exports - partners	Definition Greece 21.1%, UK 14.3%, Germany 6.6% (2006)
Imports	Definition - World rank and map $7.786 billion f.o.b. (2007 est.)
Imports - commodities	Definition consumer goods, petroleum and lubricants, intermediate goods, machinery, transport equipment
Imports - partners	Definition Greece 17.7%, Italy 10.2%, UK 9.6%, Germany 9.4%, Israel 6.5%, France 5.4%, China 5.3%, Netherlands 4.1% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $6.507 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $27.69 billion (31 December 2007 est.)
Stock of direct foreign investment - at home	Definition $13.18 billion (2007 est.)
Stock of direct foreign investment - abroad	Definition $5.324 billion (2007 est.)
Market value of publicly traded shares	Definition $48.2 billion (December 2007)
Economic aid - donor	Definition $25.9 million (2006)
Economic aid - recipient	Definition $15 million (2006)
Currency (code)	Definition Cypriot pound (CYP); euro (EUR) after 1 January 2008
Exchange rates	Definition Cypriot pounds per US dollar: 0.4286 (2007), 0.4586 (2006), 0.4641 (2005), 0.4686 (2004), 0.5174 (2003)
Fiscal year	Definition calendar year
Economy of the area administered by Turkish Cypriots	Definition 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)

Cyprus: Economy

Cyprus:
Economy