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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Cyprus (Republic of Cyprus, the government-controlled Southern part of Cyprus) has an open, free-market, services-based economy. Cyprus's accession as a full member to EU on May 1, 2004 has been an important milestone in its recent economic development. The GDP growth rate reached 3.8% in 2006 et 2007, with a forecast of 3.7% for 2008. The Cypriots are among the most prosperous people in the Mediterranean region with per capita GDP of nearly USD 21,000. The unemployment rate remains at less than 5% and inflation is under control at around 2%.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	18.43	21.45	24.94	22.54	23.36e
GDP (constant prices, annual % change)	4.1	4.4	3.7e	0.3	2.1
GDP per capita (USD)	23,848	27,313	32,772	29,348e	30,152
General government balance (in % of GDP)	-1.2	3.4	1.0	-1.0e	-1.8e
Inflation rate (%)	2.2	2.2	4.4	0.9	2.4
Unemployment rate (% of the labor force)	4.6	3.9	3.7	4.6	4.3
Current Account (billions USD)	-1.39	-2.48	-4.57	-2.31	-2.36
Current Account (in % of GDP)	-7.5	-11.6	-18.3	-10.3	-10.1

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

In the past two decades, the economy of Cyprus has shifted from agriculture to light manufacturing and services. The agricultural and mining sectors together contribute nearly 4.5% to the GDP and employs around 5% of the active population. The main crops are wine grapes, potatoes, cotton and fruits. Mineral resources are limited and mainly include copper, pyrites, chrome, asbestos, and gypsum. The manufacturing industry (mainly food-processing, paper, chemicals, textiles, metal products, and petroleum refining) accounts for 10% of the GDP but its competitiveness is declining mainly due to high labour costs. Tourism (contributing 22% to GDP) and the offshore activities (estimated at 12% of GDP) are considered as two pillars of the economy. Offshore activities are led by Cyprus based companies with foreign capital which carry out their business activities exclusively outside Cyprus but are entitled to substantial tax benefits. The service sector (includes tourism and shipping industry) contributes nearly 75% to the GDP and employs around 70% of the labor force. Cyprus has the sixth largest shipping fleet in the world.

Tourism as well as medical and wellness activities, development projects in the field of natural resources (gas, oil), research and technology are among the best sectors for future development and investment.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	4.7	24.1	70.3
Value added (in % of GDP)	-	-	-
Value added (annual % change)	-	-	-

- last available data.

Monetary indicators	2003	2004	2005	2006	2007
Euro (EUR) - Average annual exchange rate for 1 USD	0.88	0.80	0.79	0.78	0.73

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 70.8/100
Position:: mostly free
World Rank:: 24 out of 179
Regional Rank:: 12 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The geographical location of Cyprus ( the country acts like a bridge between West and East), along with its good airline and telecommunication infrastructure, has resulted into developing the country into an important regional and international business center. More than 50% of its trade is with the EU. The top three export partners of Cyprus are: France, the United Kingdom and Greece. The commodities mainly exported are electric & electronic equipment, mineral fuels & oils, vehicles and pharmaceutical products. The top three import partners are: Greece, Italy and the United Kingdom. Cyprus mainly imports mineral fuels & oils, vehicles, machinery and iron & steel.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	4,108	5,222	5,792	6,335	7,957
Exports of goods (millions USD)	925	1,173	1,545	1,393	1,483
Imports of services (millions USD)	2,237	2,644	2,706	2,939	3,764
Exports of services (millions USD)	5,372	6,235	6,502	7,160	8,802
Trade Balance (millions USD)	-3,183	-4,049	-4,247	-4,942	-6,474
Trade Balance (including service) (millions USD)	-48	-458	-451	-721	-1,436

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Greece	18.8%
United Kingdom	10.2%
Germany	5.3%
Lebanon	2.7%
Italy	2.1%
Russia	2.1%
Spain	1.8%
Romania	1.8%
United Arab Emirates	1.7%
Japan	1.7%
Syria	1.7%
Egypt	1.5%
Jordan	1.4%
Netherlands	1.4%
Belgium	1.2%
Israel	1.2%
Bulgaria	1.0%
France	1.0%
Czech Republic	0.9%
Saudi Arabia	0.9%
See more countries	60.8%

Main suppliers (% of imports)	2008
Greece	16.8%
Italy	10.5%
United Kingdom	8.7%
Germany	8.2%
Israel	8.0%
China	5.3%
Netherlands	4.0%
France	4.0%
Spain	3.6%
Japan	2.6%
Belgium	2.1%
Malta	2.0%
Sweden	1.8%
United States	1.7%
Ukraine	1.3%
Bulgaria	1.1%
Switzerland	1.0%
Brazil	0.9%
United Arab Emirates	0.8%
Egypt	0.8%
See more countries	47.8%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	19.8%
Pharmaceutical productsPharmaceutical products	13.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	8.9%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	7.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	4.9%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	4.9%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	4.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	4.5%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	3.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	2.6%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	2.5%
Iron and steelIron and steel	1.9%
Copper and articles thereofCopper and articles thereof	1.8%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.8%
Aluminium and articles thereofAluminium and articles thereof	1.5%
Miscellaneous chemical productsMiscellaneous chemical products	1.2%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	1.1%
Meat and edible meat offalMeat and edible meat offal	1.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.0%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	1.0%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.9%
Plastics and articles thereofPlastics and articles thereof	0.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.7%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.6%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.6%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.5%
Ships, boats and floating structuresShips, boats and floating structures	0.5%
Articles of iron or steelArticles of iron or steel	0.4%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Organic chemicalsOrganic chemicals	0.3%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Rubber and articles thereofRubber and articles thereof	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.2%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.2%
Explosives; pyrotechnic products; matches;...Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
CerealsCereals	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.1%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.1%
See more products	45.7%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	19.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	12.4%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	8.6%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	6.0%
Iron and steelIron and steel	4.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.7%
Plastics and articles thereofPlastics and articles thereof	2.7%
Pharmaceutical productsPharmaceutical products	2.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	2.2%
CerealsCereals	1.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.8%
Articles of iron or steelArticles of iron or steel	1.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.6%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.6%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.5%
Ceramic productsCeramic products	1.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	1.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.2%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.1%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.0%
Aluminium and articles thereofAluminium and articles thereof	1.0%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	1.0%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.9%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.8%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.8%
Rubber and articles thereofRubber and articles thereof	0.7%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.7%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.7%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.7%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.6%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.6%
Miscellaneous chemical productsMiscellaneous chemical products	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Meat and edible meat offalMeat and edible meat offal	0.5%
Glass and glasswareGlass and glassware	0.5%
Organic chemicalsOrganic chemicals	0.5%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.5%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.4%
Ships, boats and floating structuresShips, boats and floating structures	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
FertilizersFertilizers	0.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.2%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
See more products	49.0%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Finance
Statistical Office: Statistical Service
Central Bank: Central Bank of Cyprus
Stock Exchange: Cyprus Stock Exchange
Search Engines: Arachne!
Eureka!
Your Cyprus
1stCyprus.com
InterCyprus
Economic portals: Ekonomia

Political outline

Executive Power: The President is both the chief of the state and the head of the government. The President is elected by popular vote for a five-year term and holds the executive powers. The Council of Ministers is appointed jointly by the President and Vice president. Under the 1960 constitution, the post of Vice President is reserved for a Turkish-Cypriot and thus lies vacant as of now.
Legislative Power: Legislative power in the Republic of Cyprus (internationally recognized) is excercised by the House of Representatives with its 80 members elected by popular vote to serve five-year terms.
Main political parties: KISOS (Movement for Social Democracy United Democratic Union of Centre), AKEL (Progressive Party of the Working People or Communist Party), DIKO (Democratic Party), DISY (Democratic Rally), EURO.KO (European Party), ADIK (Fighting Democratic Movement), Green Party of Cyprus, EDE (United Democrats Movement)
Current political leaders: President: Demetris Christofias (since February 2008)
Next election dates: Presidential: February 2013 (last elections held in 2008)
Parliamentary: May 2011

Indicator of freedom of the press

World Rank:: 31/173
Evolution:: 15 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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