Capital City: Nicosia
	It is %T:%M %A in Nicosia

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Economic trends

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 is stagnant 3.8% reached in 2006 et 2007, with a forecast to 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 branches 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.

International trade

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.