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Cyprus Economy

The economy of Republic of Cyprus is dominated by the services sector which contributes about 78% to the country’s GDP. Tourism is the leading economic activity followed by financial services and real estate. Since tourism is the main service industry in Cyprus it is heavily dependent on the economic performance and political environment of other European nations. Republic of Cyprus adopted the Euro as its national currency in January 2001, after having joined the European Exchange Rate Mechanism in 2005 May. After adopting the Euro, the economy facing a fiscal deficit of 6.3% in 2003 was transformed into a 1.5% surplus economy in 2007.

Economic activities of Cyprus

Services accounting for nearly 78% of GDP (gross domestic product), is the primary economic activity in Cyprus. Tourism is the most important revenue earner for Cyprus economy. Other related industries in the tertiary sector include banking and financial services, real estate, transport and communication, and real estate development.

Industrial sector in Cyprus contributes over 19% towards GDP. Ship refurbishing and repairs, cement manufacturing, gypsum production, beverage processing, metal products, light chemicals, paper and wood are the key industries in this Mediterranean island. Cement, pharmaceuticals, and clothing are exported.

Around 3% of GDP is contributed by the agricultural sector. Citrus fruits, grapes, olives, vegetables, and barley are the main agricultural products. Meat processing, food processing and dairy products are other agriculture based activities in Cyprus. Citrus fruits, beverages, and potatoes are the important agricultural exports from Cyprus.

Petroleum and its products, transport equipment, consumer goods, machineries, and intermediate products constitute the major imports of Republic of Cyprus. Greece, Germany, the United Kingdom, Netherlands, France, Italy, China, and Israel are the notable trading partners of Cyprus.

Economic parameters of Cyprus economy

The main economic indicators of Cyprus are:

  • GDP based on purchasing power parity (ppp) - US $21.4 billion
  • GDP based on official exchange rate - US $ 21.3 billion
  • Per capita GDP based on ppp - US $27,100
  • Real growth rate of GDP - 4.4%
  • Gross fixed investment - 20.8% of GDP
  • Annual revenue - US $9.996 billion
  • Annual expenditure - US $9.304 billion
  • Export earnings - US $1.495 billion f.o.b. (free on board)
  • Import expenditure - US $7.84 billion f.o.b.
  • Electricity consumption - 4.135 billion kWh (estimate of 2006)
  • Oil consumption - 56,000 bbl (billion barrels) per day (estimate of 2005)
  • Currency - Euro

All figures are as per estimates of 2007.

Source:https://www.cia.gov/library/publications/the-world-factbook/geos/cy.html#Econ

 

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