Economy of Cyprus
The U.S. embassy in Nicosia sponsors a popular pavilion for American products at the annual Cyprus International State Fair, hosts the Commercial Awards dinner, and organizes other events to promote U.S. products throughout the year. Total U.S. exports to Cyprus were about $700 million in 1997 (compared with $670 million in 1996), making the U.S. Cyprus' number-one supplier of total imports for the third year in a row. Exports include American tobacco and tobacco products, automatic data processing and other machinery, and cereals. Principal U.S. imports from Cyprus consist of clothing, footwear, steel tubes and pipes, dairy products, and various food items.
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Turkish Cypriot economy
The economic disparity between the two communities is pronounced. Although the Turkish Cypriot area operates on a free-market basis, the lack of private and governmental investment, shortages of skilled labor and experienced managers, plus inflation and the devaluation of the Turkish lira (which the Turkish Cypriots use as their currency) continue to plague the economy.
Turkey is, by far, the main trading partner of the "T.R.N.C.," supplying 55% of imports and absorbing 48% of exports. In a landmark case, the European Court of Justice (ECJ) ruled on July 5, 1994, against the British practice of importing produce from Northern Cyprus based on certificates of origin and phytosanitary certificates granted by "T.R.N.C." authorities. The ECJ decision stated that only goods bearing certificates of origin from the Government of Cyprus could be recognized for trade by EU member countries. That decision resulted in a considerable decrease of Turkish Cypriot exports to the EU: from $36.4 million (or 66.7% of total Turkish Cypriot exports) in 1993 to $24.7 million in 1996 (or 35% of total exports) in 1996. Even so, the EU continues to be the "T.R.N.C.'s" second-largest trading partner, with a 24.7% share of total imports and 35% share of total exports.
Assistance from Turkey is the mainstay of the Turkish Cypriot economy. Under the latest economic protocol (signed January 3, 1997), Turkey undertakes to provide Turkish Cypriots loans totaling $250 million for the purpose of implementing projects included in the protocol related to public finance, tourism, banking, and privatization. Fluctuation in the Turkish lira, which suffered from hyperinflation every year until its replacement by the New Turkish Lira in 2005, exerted downward pressure on the Turkish Cypriot standard of living for many years.
The Turkish Cypriot de facto authorities have instituted a free market in foreign exchange and permit residents to hold foreign-currency denominated bank accounts. This encourages transfers from Turkish Cypriots living abroad.
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Statistics
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: 3.7%
| Year | GDP in billions of USD PPP |
% GDP Growth |
|---|---|---|
| 2002 | 14.397 | 2.1 |
| 2003 | 14.953 | 1.9 |
| 2004 | 15.764 | 3.7 |
| 2005 | 16.745 | 3.8 |
| 2006 | 17.772 | 4.0 |
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 GWh; 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 GWh; 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 euro = 100 cent since 1 January 2008
previously 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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References
- ^ a b World Economic Outlook. International Monetary Fund (October 2007). Retrieved on 2007-11-03.
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See also
- Cyprus Trade & Exports
- Cyprus Foreign Investment
- Cyprus Company Registration
- Cyprus Professional Services
- Cyprus Agriculture
- Economy of Europe
- Cypriot pound
- List of Minister of Finance of the Republic of Cyprus
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