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Cyprus Geography
Economy
Economy - overview: Economic affairs are dominated by the
division of the country into the southern (Greek) area controlled
by the Cyprus Government and the northern Turkish Cypriot-administered
area. The Greek Cypriot economy is prosperous but highly susceptible
to external shocks. Erratic growth rates in the 1990s reflect
the economy's vulnerability to swings in tourist arrivals,
caused by political instability on the island and fluctuations
in economic conditions in Western Europe. Economic policy
in the south is focused on meeting the criteria for admission
to the EU. As in the Turkish sector, water shortage is a growing
problem, and several desalination plants are planned. The
Turkish Cypriot economy has about one-fifth the population
and one-third the per capita GDP of the south. Because it
is recognized only by Turkey, it has had much difficulty arranging
foreign financing, and foreign firms have hesitated to invest
there. The economy remains heavily dependent on agriculture
and government service, which together employ about half of
the work force. Moreover, the small, vulnerable economy has
suffered because the Turkish lira is legal tender. To compensate
for the economy's weakness, Turkey provides direct and indirect
aid to tourism, education, industry, etc.
GDP: Greek Cypriot area: purchasing power parity - $15.71
bn; Turkish Cypriot area: purchasing power parity - $4.54
bn (2004 est)
GDP - real growth rate: Greek Cypriot area: 3.2%; Turkish
Cypriot area: 2.6% (2004 est.)
GDP - per capita: Greek Cypriot area: purchasing power parity
- $20,300; Turkish Cypriot area: purchasing power parity -
$7,135 (2004 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: 2.4%
(2004 est); Turkish Cypriot area: 12.6% (2003 est)
Labour force: Greek Cypriot area: 330,000; Turkish Cypriot
area: 95,025 (2004 est)
Labour force - by occupation: Greek Cypriot area: services
73% Industry 22% agriculture 5% (2000); Turkish Cypriot area:
services 56.4% industry 22.8% agriculture 20.8% (1998)
Unemployment rate: Greek Cypriot area: 3.2% (2004 est); Turkish
Cypriot area: 5.6% (2004 est)
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: Tourism, food and beverage processing, cement
& Gypsum production, ship repair and refurbishment, textiles,
light chemicals, metal products, wood, paper, stone and clay
products.
Industrial production growth rate: Greek Cypriot area: 2.4%
(1998); Turkish Cypriot area: 5.1% (1997)
Electricity - production: Greek Cypriot area: 2.675 billion
kWh; 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 billion
kWh; Turkish Cypriot area: NA kWh (1998)
Electricity - exports: 0 kWh (1998)
Electricity - imports: 0 kWh (1998)
Agriculture - products: potatoes, citrus, other vegetables,
barley, grapes, olives, poultry, pork, lamb, kids, dairy,
cheese,
Exports: Greek Cypriot area: $1.094 bn (f.o.b. 2004 est);
Turkish Cypriot area: $49.3 mi (f.o.b. 2004 est)
Exports - commodities: Greek Cypriot area: citrus, potatoes,
pharmaceuticals, cement, clothing and cigarettes 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: $5,258 bn (f.o.b. 2004 est);
Turkish Cypriot area: $415.2 mi (f.o.b. 2004 est)
Imports - commodities: Greek Cypriot area: Consumer goods,
petroleum and lubricants, intermediate goods, machinery, transport
equipment ; Turkish Cypriot area: vehicles, fuel, cigarettes,
food, minerals, chemicals, machinery
Imports - partners: UK, Greece, Lebanon, Italy, Germany, Japan,
France, China, US (2003); 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 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
Main Source:
Department of Statistics
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