Economy - Facts
|GDP (2005)||$15.43 billion|
|Annual Real Growth Rate (2005)||3.7%|
|Per Capita GDP Income (2005)||$21,600|
|Agriculture & Natural Resources|
3.8% of GDP
Citrus, vegetables, barley, grapes, olives, vegetables; poultry, pork, lamb; dairy, cheese.
Pyrites, copper, asbestos, gypsum, lumber, salt, marble, clay, and earth pigment
|Industry & Construction|
20% of GDP
Mining, cement, construction, utilities, manufacturing, chemicals, non-electric machinery, textiles, footwear, food, beverages, and tobacco.
|Services & Tourism|
76.2% of GDP
Exports: $1.237 billion
Citrus, grapes, wine, potatoes, clothing, and footwear.
Major Markets: EU (especially the U. K. and Greece), Middle East, Russia
Imports: $5.552 billion
Consumer goods, raw materials for industry, petroleum and lubricants, food and feed grains.
Major Suppliers: Greece, Italy, Germany, and U. K. U. S. trade surplus--projected for 2003: $168 million)
Cyprus has an open, free-market, serviced-based economy with some light manufacturing. Cyprus’ accession as a full member of the European Union as of 1 May 2004, has been an important milestone in the course of its economic development. The Cypriots are among the most prosperous people in the Mediterranean region.
In the past 20 years, the economy has shifted from agriculture to light manufacturing and services. The service sector, including tourism, contributes 76.2% to the GDP and employs 70.7% of the labor force. Industry and construction contribute 19.7% and employ 21.3% of labor. Manufactured goods account for approximately 63.6% of domestic exports. Agriculture and mining are responsible for 4.6% of GDP and 8.0% of the labor force. Potatoes and citrus are the principal export crops.
The average rate of growth in the 1990s was 4.4%, compared to 6.1% in the 1980s. In the last two years (2002 and 2003), the annual economic growth dropped to 2.0%, compared with 4.0% in 2001 and 5.1% in 2000. In 2003, unemployment accelerated to 3.5% of GDP, from 3.2% the year before. Inflation also recorded an increase to 4.1% from 2.8% in 2002. As in recent years, the services sectors and tourism in particular, provided the main impetus for growth. Economic activity in manufacturing and agriculture remained about the same in 2003.
Trade is vital to the Cypriot economy: the island is not self-sufficient in food, and has few natural resources. The trade deficit decreased to 9.2% in 2003 (on account of a considerable reduction in imports), reaching $3.0 billion.
Cyprus must import fuels, most raw materials, heavy machinery, and transportation equipment. More than 50% of its trade is with the European Union, particularly with the United Kingdom.
Growth in 2004 is expected to accelerate to 3.5%, due to a revival in tourism. Unemployment is expected to remain around 3.6% in 2004, while inflation is forecasted to drop considerably to 2.5%. The fiscal deficit is forecasted to decline to 4.4% of GDP in 2004, compared with 5.4% in 2003, remaining above EU Maastricht targets.