Economy of Cyprus: Difference between revisions
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{{Use dmy dates|date= | {{Use dmy dates|date=October 2025}} | ||
{{outdated|date=February 2026}} | |||
{{Infobox economy | {{Infobox economy | ||
| country | | country = Cyprus | ||
| image | | image = Nicosia's skyline 2024.jpg | ||
| caption | | caption = [[Nicosia]], the island's financial hub | ||
| currency | | currency = [[Euro]] (EUR €) | ||
| year | | year = [[Calendar year]] | ||
| organs | | organs = European Union, [[World Trade Organization]] | ||
| group | | group = {{plainlist| | ||
* [[Developed country|Advanced economy]]<ref name="WEO groups" /> | * [[Developed country|Advanced economy]]<ref name="WEO groups" /> | ||
* [[World Bank high-income economy|High-income economy]]<ref name="World Bank groups" />}} | * [[World Bank high-income economy|High-income economy]]<ref name="World Bank groups" />}} | ||
| population | | population = {{increase}} 0.995 million (2026 est.)<ref name="WEO database" /> | ||
| gdp | | gdp = {{plainlist| | ||
* {{increase}} $ | * {{increase}} $45.171 billion (nominal, 2026 est.)<ref name="WEO database" /> | ||
* {{increase}} $ | * {{increase}} $67.441 billion ([[purchasing power parity|PPP]], 2026 est.)<ref name="WEO database" />}} | ||
| gdp rank | | gdp rank = {{plainlist| | ||
* [[List of countries by GDP (nominal)| | * [[List of countries by GDP (nominal)|100th]] (nominal, 2026 est.) | ||
* [[List of countries by GDP (PPP)| | * [[List of countries by GDP (PPP)|122nd]] (PPP, 2026 est.)}} | ||
| growth | | growth = {{plainlist| | ||
* {{increase}} 3.0% (Q1 | * {{increase}} 3.0% (Q1 2026 est.)<ref>{{cite web |title=GDP Growth Rate - Growth Rate 3,0% (seasonally adjusted) |url=https://www.cystat.gov.cy/en/PressRelease?id=73165 |publisher=Statistical Service of Cyprus |access-date=13 May 2026 |location=Nicosia |date=13 May 2026}}</ref><ref>{{cite web |title=GDP and employment flash estimates for the first quarter of 2026 |url=https://ec.europa.eu/eurostat/en/web/products-euro-indicators/w/2-13052026-ap |publisher=[[Eurostat]] |access-date=13 May 2026 |location=Luxembourg |date=13 May 2026}}</ref> | ||
* {{increase}} 3. | * {{increase}} 3.8% (2025 est.)<ref>{{cite web |title=Data Update of Annual National Accounts: Growth Rate 2025 at 3,8% (in real terms) |url=https://www.cystat.gov.cy/en/PressRelease?id=74061 |publisher=Statistical Service of Cyprus |access-date=21 April 2026 |location=Nicosia |date=20 April 2026}}</ref> | ||
* {{increase}} | * {{increase}} 3% {{abbr|(2026f)|2026 forecast}}<ref name="WEO database" />}} | ||
}} | | per capita = {{plainlist| | ||
| per capita | * {{increase}} $45,409 (nominal, 2026 est.)<ref name="WEO database" /> | ||
* {{increase}} $ | * {{increase}} $67,796 (PPP, 2026 est.)<ref name="WEO database" />}} | ||
* {{increase}} $ | |||
| per capita rank = {{plainlist| | | per capita rank = {{plainlist| | ||
* [[List of countries by GDP (nominal) per capita| | * [[List of countries by GDP (nominal) per capita|28th]] (nominal, 2026 est.) | ||
* [[List of countries by GDP (PPP) per capita| | * [[List of countries by GDP (PPP) per capita|29th]] (PPP, 2026 est.)}} | ||
| sectors | | sectors = {{plainlist| | ||
* [[Primary sector of the economy|agriculture]]: 2% | * [[Primary sector of the economy|agriculture]]: 2% | ||
* [[Secondary sector of the economy|industry]]: 12.5% | * [[Secondary sector of the economy|industry]]: 12.5% | ||
* [[Tertiary sector of the economy|services]]: 85.5% | * [[Tertiary sector of the economy|services]]: 85.5% | ||
* (2017 est.)<ref name="CIAWFCY" />}} | * (2017 est.)<ref name="CIAWFCY" />}} | ||
| inflation | | inflation = {{plainlist| | ||
* | * 2.8% (April 2026)<ref>{{cite web |title=CONSUMER PRICE INDEX (CPI): APRIL 2026 |url=https://www.cystat.gov.cy/en/PressRelease?id=73157 |publisher=Statistical Service of Cyprus |access-date=11 May 2026 |location=Nicosia |date=7 May 2026}}</ref> | ||
* 2. | * 2.6% {{abbr|(2026f)|2026 forecast}}<ref name="WEO database" /> | ||
}} | }} | ||
| poverty | | poverty = {{steady}} 17.1% at risk of poverty or social exclusion (2025)<ref>{{cite web |title=Risk of Poverty 2025 |url=https://www.cystat.gov.cy/en/PressRelease?id=73985 |publisher=Statistical Service of Cyprus |access-date=26 March 2026 |location=Nicosia |date=23 March 2026}}</ref> | ||
| gini | | gini = {{increaseNegative}} 31.2 {{color|darkorange|medium}} (2025)<ref>{{cite web |title=Gini coefficient of equivalised disposable income |url=https://ec.europa.eu/eurostat/databrowser/view/tessi190/default/table?lang=en |publisher=Eurostat |access-date=26 March 2026 |location=Luxembourg |date=26 March 2026}}</ref> | ||
| hdi | | hdi = {{plainlist| | ||
* {{increase}} 0.913 {{color|darkgreen|very high}} (2023)<ref>{{cite web |title=Country Insights |url=https://hdr.undp.org/data-center/country-insights |publisher=[[Human Development Report]] Office, [[United Nations Development Programme]] |access-date=9 May 2025 |location=New York |date=6 May 2025}}</ref> ([[List of countries by Human Development Index|32nd]]) | * {{increase}} 0.913 {{color|darkgreen|very high}} (2023)<ref>{{cite web |title=Country Insights |url=https://hdr.undp.org/data-center/country-insights |publisher=[[Human Development Report]] Office, [[United Nations Development Programme]] |access-date=9 May 2025 |location=New York |date=6 May 2025}}</ref> ([[List of countries by Human Development Index|32nd]]) | ||
* {{increase}} 0.841 {{color|darkgreen|very high}} (2023)<ref>{{cite web |title=Inequality-adjusted Human Development Index |url=https://hdr.undp.org/inequality-adjusted-human-development-index |publisher=Human Development Report Office, United Nations Development Programme |access-date=9 May 2025 |location=New York |date=6 May 2025}}</ref> ([[List of countries by inequality-adjusted Human Development Index|IHDI, 22nd]])}} | * {{increase}} 0.841 {{color|darkgreen|very high}} (2023)<ref>{{cite web |title=Inequality-adjusted Human Development Index |url=https://hdr.undp.org/inequality-adjusted-human-development-index |publisher=Human Development Report Office, United Nations Development Programme |access-date=9 May 2025 |location=New York |date=6 May 2025}}</ref> ([[List of countries by inequality-adjusted Human Development Index|IHDI, 22nd]])}} | ||
| cpi = {{ | | cpi = {{decrease}} 55 out of 100 points (2025, [[Corruption Perceptions Index|49th]])<ref>{{cite web |title=2025 Corruption Perceptions Index |url=https://www.transparency.org/en/cpi/2025/index/cyp |publisher=[[Transparency International]] |access-date=14 February 2026 |location=Berlin |date=10 February 2026}}</ref> | ||
| labor | | labor = {{plainlist| | ||
* {{increase}} 655,118 (2021)<ref>{{cite web |title=Labor force, total | * {{increase}} 655,118 (2021)<ref>{{cite web |title=Labor force, total – Cyprus |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=CY&most_recent_value_desc=true |publisher=[[World Bank]] |access-date=10 January 2023 |location=Washington, D.C.}}</ref> | ||
* {{increasePositive}} 78.9% employment rate (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Employment_-_annual_statistics |title=Employment rate by sex, age group | * {{increasePositive}} 78.9% employment rate (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Employment_-_annual_statistics |title=Employment rate by sex, age group 20–64 |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=20 July 2024}}</ref>}} | ||
| occupations | | occupations = {{plainlist| | ||
* agriculture: 3.8% | * agriculture: 3.8% | ||
* industry: 15.2% | * industry: 15.2% | ||
* services: 81% | * services: 81% | ||
* (2014 est.)<ref name="CIAWFCY" />}} | * (2014 est.)<ref name="CIAWFCY" />}} | ||
| unemployment | | unemployment = {{plainlist| | ||
*{{ | *{{decreasePositive}} 3.2% (April 2026)<ref name="Eurostat unemployment">{{cite web |title=Euro area unemployment at 6.3% |url=https://ec.europa.eu/eurostat/en/web/products-euro-indicators/w/3-01062026-ap |publisher=Eurostat |access-date=1 June 2026 |location=Luxembourg |date=1 June 2026}}</ref> | ||
* {{ | * {{increaseNegative}} 4.6% {{abbr|(2026f)|2026 forecast}}<ref name="WEO database" /> | ||
* {{ | * {{decreasePositive}} 12.7% youth unemployment (under 25s; Q1 2026)<ref name="Eurostat unemployment" />}} | ||
| average gross salary = {{increase}} €2, | | average gross salary = {{increase}} €2,605 per month (2025 est.)<ref>{{cite web |title=Average Monthly Earnings of Employees by Quarter - Increase 4,9% for 2025 |url=https://www.cystat.gov.cy/en/PressRelease?id=73145 |publisher=Statistical Service of Cyprus |access-date=27 April 2026 |location=Nicosia |date=27 April 2026}}</ref> | ||
| average net salary | | average net salary = {{increase}} €17,582 (2018; annual, [[Equivalisation|equivalised]])<ref name="Eurostat income">{{cite web|title=Mean and median income by age and sex – EU-SILC and ECHP surveys|url=http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=ilc_di03|publisher=Eurostat|access-date=29 June 2020|location=Luxembourg|date=17 June 2020}}</ref> | ||
|industries | | industries = tourism, food and beverage processing, cement and gypsum, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone and clay products<ref name="CIAWFCY" /> | ||
| exports = {{increase}} $5.16 billion (2021)<ref name="OEC 2021">{{cite web |title=Cyprus (CYP) Exports, Imports, and Trade Partners |url=https://oec.world/en/profile/country/cyp |publisher=The Observatory of Economic Complexity |access-date=4 March 2023 |date=4 March 2023}}</ref> | |||
| exports | | export-goods = citrus, potatoes, pharmaceuticals, cement, clothing<ref name="CIAWFCY" /> | ||
|export-goods | | export-partners = {{plainlist| | ||
|export-partners = {{plainlist| | |||
*{{flag|Hong Kong}} 9.82% | *{{flag|Hong Kong}} 9.82% | ||
*{{flag|Greece}} 9.6% | *{{flag|Greece}} 9.6% | ||
| Line 74: | Line 73: | ||
*{{flag|France}} 2.82% | *{{flag|France}} 2.82% | ||
*(2022)<ref name="OEC 2021" />}} | *(2022)<ref name="OEC 2021" />}} | ||
|imports | | imports = {{increase}} $14.8 billion (2021)<ref name="OEC 2021" /> | ||
|import-goods | | import-goods = consumer goods, petroleum and lubricants, machinery, transport equipment<ref name="CIAWFCY" /> | ||
|import-partners = {{plainlist| | | import-partners = {{plainlist| | ||
*{{flag|Greece}} 19.3% | *{{flag|Greece}} 19.3% | ||
*{{flag|Turkey}} 11.6% | *{{flag|Turkey}} 11.6% | ||
| Line 88: | Line 87: | ||
*{{flag|Singapore}} 1.73% | *{{flag|Singapore}} 1.73% | ||
*(2022)<ref name="OEC 2021" />}} | *(2022)<ref name="OEC 2021" />}} | ||
|current account = {{decrease}} −$1.458 billion (2017 est.)<ref name="CIAWFCY">{{Cite CIA World Factbook|country=Cyprus|access-date=6 February 2020}}</ref> | | current account = {{decrease}} −$1.458 billion (2017 est.)<ref name="CIAWFCY">{{Cite CIA World Factbook|country=Cyprus|access-date=6 February 2020}}</ref> | ||
|FDI | | FDI = | ||
|gross external debt = {{decreasePositive}} $95.28 billion (31 December 2013 est.) | | gross external debt = {{decreasePositive}} $95.28 billion (31 December 2013 est.) | ||
|debt | | debt = {{plainlist| | ||
|balance | *€20.0782 billion ({{decreasePositive}} 55.0% of GDP, 2025 est.)<ref name="CYSTAT fiscal data">{{cite web |title=Excessive Deficit Procedure and Annual Fiscal Accounts of General Government - Surplus €1.241,5 mn |url=https://www.cystat.gov.cy/en/PressRelease?id=73989 |publisher=Statistical Service of Cyprus |access-date=22 April 2026 |location=Nicosia |date=22 April 2026}}</ref><ref name="Eurostat fiscal data">{{cite web |title=Provision of deficit and debt data for 2025 - first notification |url=https://ec.europa.eu/eurostat/en/web/products-euro-indicators/w/2-22042026-ap |publisher=[[Eurostat]] |access-date=22 April 2026 |location=Luxembourg |date=22 April 2026}}</ref> | ||
|expenses | *€19.497 billion ({{decreasePositive}} 50.9% of GDP, {{abbr|2026f|2026 forecast}})<ref name="WEO database" /> | ||
|revenue | }} | ||
|credit = {{plainlist| | | balance = €1.2415 billion ({{decrease}} 3.4% of GDP, 2025 est.)<ref name="CYSTAT fiscal data" /><ref name="Eurostat fiscal data" /> | ||
| expenses = €14.6802 billion ({{increaseNegative}} 40.2% of GDP, 2025 est.)<ref name="CYSTAT fiscal data" /><ref name="Eurostat fiscal data" /> | |||
| revenue = €15.9217 billion ({{increase}} 43.6% of GDP, 2025 est.)<ref name="CYSTAT fiscal data" /><ref name="Eurostat fiscal data" /> | |||
| credit = {{plainlist| | |||
*[[Morningstar DBRS|DBRS]]:<ref>{{cite web |title=Morningstar DBRS Upgrades Republic of Cyprus to A (low), Trend Remains Positive |url=https://dbrs.morningstar.com/research/450391/morningstar-dbrs-upgrades-republic-of-cyprus-to-a-low-trend-remains-positive |publisher=Morningstar DBRS |access-date=25 April 2025 |location=Frankfurt |date=21 March 2025}}</ref> | *[[Morningstar DBRS|DBRS]]:<ref>{{cite web |title=Morningstar DBRS Upgrades Republic of Cyprus to A (low), Trend Remains Positive |url=https://dbrs.morningstar.com/research/450391/morningstar-dbrs-upgrades-republic-of-cyprus-to-a-low-trend-remains-positive |publisher=Morningstar DBRS |access-date=25 April 2025 |location=Frankfurt |date=21 March 2025}}</ref> | ||
*A (low) | *A (low) | ||
| Line 109: | Line 111: | ||
*AAA (T&C Assessment) | *AAA (T&C Assessment) | ||
*Outlook: Stable | *Outlook: Stable | ||
*Scope:<ref>{{cite web |title=Scope | *Scope:<ref>{{cite web |title=Scope affirms Republic of Cyprus’s credit ratings at A- and revises the Outlook to Positive | ||
|url=https://scoperatings.com/ratings-and-research/rating/EN/179417 |publisher=Scope Ratings |access-date=10 October 2025 |date=10 October 2025}}</ref> | |||
*A- | *A- | ||
*Outlook: | *Outlook: Positive}} | ||
|reserves | | reserves = {{increase}} $888.2 million (31 December 2017 est.)<ref name="CIAWFCY" /> | ||
| aid = {{plainlist| | | aid = {{plainlist| | ||
*€640 million from [[Regional policy of the European Union|European Structural and Investment Funds]] (2007–2013)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/cy_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20171225203037/https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/cy_en.pdf |archive-date=25 December 2017 |url-status=live }}</ref> | *€640 million from [[Regional policy of the European Union|European Structural and Investment Funds]] (2007–2013)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/cy_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20171225203037/https://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/cy_en.pdf |archive-date=25 December 2017 |url-status=live }}</ref> | ||
*€874 million from [[Regional policy of the European Union|European Structural and Investment Funds]] (2014–2020)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_cy_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20170420135423/https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_cy_en.pdf |archive-date=20 April 2017 |url-status=live }}</ref>}} | *€874 million from [[Regional policy of the European Union|European Structural and Investment Funds]] (2014–2020)<ref>{{Cite web |url=https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_cy_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20170420135423/https://ec.europa.eu/regional_policy/sources/policy/what/investment-policy/esif-country-factsheet/esi_funds_country_factsheet_cy_en.pdf |archive-date=20 April 2017 |url-status=live }}</ref>}} | ||
| spelling = | |||
|spelling | |||
}} | }} | ||
The '''economy of Cyprus''' is a [[World Bank high-income economy|high-income economy]] as classified by the [[World Bank]],<ref name="World Bank groups">{{cite web |title=World Bank Country and Lending Groups – World Bank Data Help Desk |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |publisher=The [[World Bank Group]] |access-date=12 April 2023 |location=Washington, D.C.}}</ref> and was included by the [[International Monetary Fund]] in its list of [[developed country|advanced economies]] in 2001.<ref name="WEO groups">{{cite web |title= | The '''economy of Cyprus''' is a [[World Bank high-income economy|high-income economy]] as classified by the [[World Bank]],<ref name="World Bank groups">{{cite web |title=World Bank Country and Lending Groups – World Bank Data Help Desk |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |publisher=The [[World Bank Group]] |access-date=12 April 2023 |location=Washington, D.C.}}</ref> and was included by the [[International Monetary Fund]] in its list of [[developed country|advanced economies]] in 2001.<ref name="WEO groups">{{cite web |title=Database—WEO Groups and Aggregates Information |url=https://data.imf.org/en/Datasets/WEO/Groups-and-Aggregates-October-2025 |publisher=[[International Monetary Fund]] |access-date=16 October 2025 |location=Washington, D.C. |date=14 October 2025}}</ref><ref>{{cite web |title=Changes to the Database |url=https://data.imf.org/en/Datasets/WEO/Changes-to-the-Database |publisher=[[International Monetary Fund]] |access-date=16 October 2025 |location=Washington, D.C. |date=14 October 2025}}</ref> [[Cyprus]] adopted the [[euro]] as its official currency on 1 January 2008, replacing the [[Cypriot pound]] at an irrevocable fixed [[exchange rate]] of CYP 0.585274 per €1.<ref>{{cite web |title=Our money |url=https://www.ecb.europa.eu/euro/intro/html/index.en.html |publisher=[[European Central Bank]] |access-date=8 December 2020 |location=Frankfurt |date=12 November 2020}}</ref> | ||
The [[2012–2013 | The [[2012–2013 Cypriot financial crisis]] dominated the country's economic affairs in the 2010s. In March 2013, the Cypriot government reached an agreement with its [[eurozone]] partners to split the country's second biggest bank, the [[Cyprus Popular Bank]] (also known as Laiki Bank), into a "bad" bank which would be wound down over time and a "good" bank which would be absorbed by the larger [[Bank of Cyprus]]. In return for a €10 billion [[bailout]] from the [[European Commission]], the [[European Central Bank]] and the International Monetary Fund, the Cypriot government would be required to impose a significant [[haircut (finance)|haircut]] on [[deposit insurance|uninsured deposits]].<ref>{{cite news|title=As Banks in Cyprus Falter, Other Tax Havens Step In|url=https://www.nytimes.com/2013/04/01/business/global/as-banks-in-cyprus-falter-other-tax-havens-step-in.html?_r=0|access-date=24 October 2013|newspaper=The New York Times|date=31 March 2013|first=Andrew|last=Higgins}}</ref> Insured deposits of €100,000 or less would not be affected.<ref>{{cite web|title=Eurogroup Statement on Cyprus|url=http://eurozone.europa.eu/newsroom/news/2013/03/eg-statement-cyprus-25-03-13/|publisher=[[Eurogroup]]|access-date=30 March 2013|date=25 March 2013|url-status=dead|archive-url=https://wayback.archive-it.org/all/20171011040449/http://www.consilium.europa.eu/en/splash/?requested=%2fcouncil-eu%2feurogroup%2f|archive-date=11 October 2017}}</ref><ref name=ReutersNewdeal>{{cite news |author=Jan Strupczewski |author2=Annika Breidthardt |title=Last-minute Cyprus deal to close bank, force losses |work=Reuters |date=25 March 2013 |url=https://www.reuters.com/article/us-cyprus-parliament-idUSBRE92G03I20130325 |access-date=25 March 2013}}</ref><ref name=Ekathimerini>{{cite news |title=Eurogroup signs off on bailout agreement reached by Cyprus and troika |newspaper=Ekathimerini |location=Greece |date=25 March 2013 |url=http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_25/03/2013_489702 |access-date=25 March 2013}}</ref> After a three-and-a-half-year [[recession]], Cyprus returned to growth in the first quarter of 2015.<ref>{{cite news|title=Cyprus growth welcome but fragile – finmin|url=http://in-cyprus.com/cyprus-growth-welcome-but-fragile-finmin/|access-date=13 May 2015|work=[[Cyprus Weekly]]|date=13 May 2015|url-status=dead|archive-url=https://web.archive.org/web/20150518080146/http://in-cyprus.com/cyprus-growth-welcome-but-fragile-finmin/|archive-date=18 May 2015}}</ref> Cyprus successfully concluded its three-year financial assistance programme at the end of March 2016, having borrowed a total of €6.3 billion from the [[European Stability Mechanism]] and €1 billion from the IMF.<ref name="ESM">{{cite web|title=Cyprus successfully exits ESM programme|url=http://esm.europa.eu/press/releases/cyprus-successfully-exits-esm-programme.htm|publisher=[[European Stability Mechanism]]|access-date=31 March 2016|location=Luxembourg|date=31 March 2016|archive-date=18 October 2016|archive-url=https://web.archive.org/web/20161018043739/http://esm.europa.eu/press/releases/cyprus-successfully-exits-esm-programme.htm|url-status=dead}}</ref><ref name="Memorandum">{{cite news|title=Επισήμως εκτός μνημονίου η Κύπρος|url=http://www.kathimerini.gr/855021/article/oikonomia/ellhnikh-oikonomia/epishmws-ektos-mnhmonioy-h-kypros|access-date=31 March 2016|work=[[Kathimerini]]|date=31 March 2016|location=Athens|language=el}}</ref> The remaining €2.7 billion of the ESM bailout was never dispensed, due to the Cypriot government's better than expected finances over the course of the programme.<ref name="ESM" /><ref name="Memorandum" /> | ||
[[File:Cyprus GDP.svg|thumb|250px|Charts showing the GDP of Cyprus]] | [[File:Cyprus GDP.svg|thumb|250px|Charts showing the GDP of Cyprus]] | ||
| Line 130: | Line 132: | ||
Cyprus has an [[open economy|open]], [[market economy|free-market]], [[service economy|service-based]] economy with some light manufacturing. Internationally, Cyprus promotes its geographical location as a "bridge" between [[Eastern world|East]] and West, along with its educated English-speaking population, moderate local costs, good airline connections, and telecommunications. | Cyprus has an [[open economy|open]], [[market economy|free-market]], [[service economy|service-based]] economy with some light manufacturing. Internationally, Cyprus promotes its geographical location as a "bridge" between [[Eastern world|East]] and West, along with its educated English-speaking population, moderate local costs, good airline connections, and telecommunications. | ||
Since gaining independence from the United Kingdom in 1960, Cyprus has had a record of successful economic performance, reflected in strong growth, full employment conditions and relative stability. The underdeveloped agrarian economy inherited from colonial rule has been transformed into a modern economy, with dynamic services, industrial and agricultural sectors and an advanced physical and social infrastructure. The Cypriots are among the most prosperous people in the [[Mediterranean Sea|Mediterranean]] region, with GDP per capita in | Since gaining independence from the United Kingdom in 1960, Cyprus has had a record of successful economic performance, reflected in strong growth, full employment conditions and relative stability. The underdeveloped agrarian economy inherited from colonial rule has been transformed into a modern economy, with dynamic services, industrial and agricultural sectors and an advanced physical and social infrastructure. The Cypriots are among the most prosperous people in the [[Mediterranean Sea|Mediterranean]] region, with GDP per capita in 2025 surpassing $45,000 in nominal terms and $67,000 on the basis of [[purchasing power parity]].<ref name="WEO database">{{cite web |title=World Economic Outlook (WEO) database, April 2026 |url=https://data.imf.org/en/Data-Explorer?datasetUrn=IMF.RES:WEO(9.0.0) |publisher=International Monetary Fund |access-date=14 April 2026 |location=Washington, D.C. |date=14 April 2026}}</ref> | ||
Their [[standard of living]] is reflected in the country's "very high" [[Human Development Index]], by which it ranks 29th out of 191 countries in the world.<ref>{{cite web |date=8 September 2022 |title=Specific country data {{!}} Human Development Reports |url=https://hdr.undp.org/data-center/specific-country-data#/countries/CYP |access-date=27 January 2024 |website=United Nations Development Reports |publisher=[[United Nations Development Programme]]}}</ref> | Their [[standard of living]] is reflected in the country's "very high" [[Human Development Index]], by which it ranks 29th out of 191 countries in the world.<ref>{{cite web |date=8 September 2022 |title=Specific country data {{!}} Human Development Reports |url=https://hdr.undp.org/data-center/specific-country-data#/countries/CYP |access-date=27 January 2024 |website=United Nations Development Reports |publisher=[[United Nations Development Programme]]}}</ref> | ||
However, after more than three decades of unbroken growth, the Cypriot economy contracted in 2009.<ref>{{cite web |title=Report for Selected Countries and Subjects |url=https://www.imf.org/en/Publications/WEO/weo-database/2023/October/weo-report?c=423,&s=NGDP_RPCH,&sy=1980&ey=2024&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |publisher=International Monetary Fund |access-date=18 October 2023 |location=Washington, D.C. |date=5 October 2023}}</ref> This reflected the exposure of Cyprus to the [[Great Recession]] and [[ | However, after more than three decades of unbroken growth, the Cypriot economy contracted in 2009.<ref>{{cite web |title=Report for Selected Countries and Subjects |url=https://www.imf.org/en/Publications/WEO/weo-database/2023/October/weo-report?c=423,&s=NGDP_RPCH,&sy=1980&ey=2024&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |publisher=International Monetary Fund |access-date=18 October 2023 |location=Washington, D.C. |date=5 October 2023}}</ref> This reflected the exposure of Cyprus to the [[Great Recession]] and [[Euro area crisis]]. Furthermore, Cyprus was dealt a severe blow by the [[Evangelos Florakis Naval Base explosion]] in July 2011, with the cost to the economy estimated at €1–3 billion, or up to 17% of GDP.<ref>{{cite news|last=Kambas|first=Michele|title=Cyprus too slow in making cuts|url=http://www.cyprus-mail.com/cyprus/cyprus-too-slow-making-cuts/20110730|access-date=30 July 2011|newspaper=[[Cyprus Mail]]|date=30 July 2011|location=Nicosia|url-status=dead|archive-url=https://web.archive.org/web/20110901030437/http://www.cyprus-mail.com/cyprus/cyprus-too-slow-making-cuts/20110730|archive-date=1 September 2011}}</ref> | ||
The economic achievements of Cyprus during the preceding decades have been significant, bearing in mind the severe economic and social dislocation created by the [[Turkish invasion of Cyprus|Turkish invasion]] of 1974 and the continuing occupation of the northern part of the island by [[Turkey]]. The Turkish invasion inflicted a serious blow to the Cyprus economy and in particular to agriculture, [[Tourism in Cyprus|tourism]], [[Mining industry of Cyprus|mining]] and [[Quarry]]ing: 70 percent of the island's wealth-producing resources were lost, the tourist industry lost 65 percent of its hotels and tourist accommodation, the industrial sector lost 46 percent, and mining and quarrying lost 56 percent of production. The loss of the port of [[Famagusta]], which handled 83 percent of the general cargo, and the closure of [[Nicosia International Airport]], in the [[United Nations Buffer Zone in Cyprus|buffer zone]], were additional setbacks. | The economic achievements of Cyprus during the preceding decades have been significant, bearing in mind the severe economic and social dislocation created by the [[Turkish invasion of Cyprus|Turkish invasion]] of 1974 and the continuing occupation of the northern part of the island by [[Turkey]]. The Turkish invasion inflicted a serious blow to the Cyprus economy and in particular to agriculture, [[Tourism in Cyprus|tourism]], [[Mining industry of Cyprus|mining]] and [[Quarry]]ing: 70 percent of the island's wealth-producing resources were lost, the tourist industry lost 65 percent of its hotels and tourist accommodation, the industrial sector lost 46 percent, and mining and quarrying lost 56 percent of production. The loss of the port of [[Famagusta]], which handled 83 percent of the general cargo, and the closure of [[Nicosia International Airport]], in the [[United Nations Buffer Zone in Cyprus|buffer zone]], were additional setbacks. | ||
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In the past 30 years, the economy has shifted from agriculture to light manufacturing and services. The services sector, including tourism, contributes almost 80% to GDP and employs more than 70% of the labor force. Industry and construction account for approximately one-fifth of GDP and labor, while agriculture is responsible for 2.1% of GDP and 8.5% of the labor force. Potatoes and citrus are the principal export crops. After robust growth rates in the 1980s (average annual growth was 6.1%), economic performance in the 1990s was mixed: real GDP growth was 9.7% in 1992, 1.7% in 1993, 6.0% in 1994, 6.0% in 1995, 1.9% in 1996 and 2.3% in 1997. This pattern underlined the economy's vulnerability to swings in tourist arrivals (i.e., to economic and political conditions in Cyprus, Western Europe, and the Middle East) and the need to diversify the economy. Declining competitiveness in tourism and especially in manufacturing are expected to act as a drag on growth until structural changes are effected. Overvaluation of the Cypriot pound prior to the adoption of the euro in 2008 had kept inflation in check. | In the past 30 years, the economy has shifted from agriculture to light manufacturing and services. The services sector, including tourism, contributes almost 80% to GDP and employs more than 70% of the labor force. Industry and construction account for approximately one-fifth of GDP and labor, while agriculture is responsible for 2.1% of GDP and 8.5% of the labor force. Potatoes and citrus are the principal export crops. After robust growth rates in the 1980s (average annual growth was 6.1%), economic performance in the 1990s was mixed: real GDP growth was 9.7% in 1992, 1.7% in 1993, 6.0% in 1994, 6.0% in 1995, 1.9% in 1996 and 2.3% in 1997. This pattern underlined the economy's vulnerability to swings in tourist arrivals (i.e., to economic and political conditions in Cyprus, Western Europe, and the Middle East) and the need to diversify the economy. Declining competitiveness in tourism and especially in manufacturing are expected to act as a drag on growth until structural changes are effected. Overvaluation of the Cypriot pound prior to the adoption of the euro in 2008 had kept inflation in check. | ||
Trade is vital to the Cypriot economy — the island is not self-sufficient in food and until the recent [[Aphrodite gas field|offshore gas discoveries]] had few known natural resources – and the trade deficit continues to grow. Cyprus must import fuels, most raw materials, heavy machinery, and transportation equipment. More than 50% of its trade is with the rest of the | Trade is vital to the Cypriot economy — the island is not self-sufficient in food and until the recent [[Aphrodite gas field|offshore gas discoveries]] had few known natural resources – and the trade deficit continues to grow. Cyprus must import fuels, most raw materials, heavy machinery, and transportation equipment. More than 50% of its trade is with the rest of the European Union, especially [[Greece]] and the United Kingdom, while the Middle East receives 20% of exports. In 1991, Cyprus introduced a [[value-added tax]] (VAT), which is at 19% as of 13 January 2014. Cyprus ratified the new world trade agreement ([[General Agreement on Tariffs and Trade]], GATT) in 1995 and began implementing it fully on 1 January 1996. European Union accession negotiations started on 31 March 1998, and concluded when Cyprus joined the European Union as a full member in 2004. | ||
===Investment climate=== | ===Investment climate=== | ||
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==Role as a financial hub== | ==Role as a financial hub== | ||
[[File:Bank of Cyprus new and huge offices in Aglandjia suberb of Nicosia Republic of Cyprus.jpg|thumb|250px|[[Bank of Cyprus]] offices in [[Aglandjia]], [[Nicosia]]]] | [[File:Bank of Cyprus new and huge offices in Aglandjia suberb of Nicosia Republic of Cyprus.jpg|thumb|250px|[[Bank of Cyprus]] offices in [[Aglandjia]], [[Nicosia]]]] | ||
In the years following the [[dissolution of the Soviet Union]] it gained great popularity as a portal for investment from the West into Russia and Eastern Europe,<ref>{{cite news | url= | In the years following the [[dissolution of the Soviet Union]] it gained great popularity as a portal for investment from the West into Russia and Eastern Europe,<ref>{{cite news | url=https://www.economist.com/finance-and-economics/2011/08/06/the-midget-and-the-mighty | title=The midget and the mighty | work=Economist | date=6 August 2012}}</ref> becoming for companies of that origin the most common tax haven. More recently, there have been increasing investment flows from the West through Cyprus into Asia, particularly China and India, South America and the Middle East. In addition, businesses from outside the EU use Cyprus as their entry-point for investment into Europe. The [[Business service provider|business services]] sector remains the fastest growing sector of the economy, and had overtaken all other sectors in importance. [[Cyprus Investment Promotion Agency|CIPA]] has been fundamental towards this trend.<ref>[http://www.cyprus-mail.com/investments/investments-worth-billions-pipeline/20120913 Investments worth Billions in the Pipeline] {{webarchive|url=https://web.archive.org/web/20121121062155/http://www.cyprus-mail.com/investments/investments-worth-billions-pipeline/20120913 |date=21 November 2012 }} Cyprus-Mail – 13 September 2012</ref> | ||
Following the [[2022 Russian invasion of Ukraine]], Cyprus businesses and individuals have come under scrutiny and criticism for allowing EU and US sanctions to be breached with belated attempts to stop them or bring the culprits to justice. A number of professional law and accounting firms have been identified as helping Russian Oligarchs evade sanctions.<ref>{{cite web |title='Our credibility must be safeguarded': Cyprus in turmoil after Russia sanctions |website=[[TheGuardian.com]] |url=https://www.theguardian.com/world/2023/apr/22/cyprus-russia-sanctions-us-uk |date=22 April 2023}}</ref><ref>{{cite web |title=Cyprus handed 800-page US dossier on Russia sanctions breaches |website=[[TheGuardian.com]] |url=https://www.theguardian.com/world/2023/may/09/cyprus-handed-800-page-us-dossier-on-russia-sanctions-breaches |date=9 May 2023}}</ref><ref>{{cite web |title=Five law firms under sanctions-busting spotlight |url=https://www.financialmirror.com/2023/05/18/five-law-firms-under-sanctions-busting-spotlight/ |date=18 May 2023}}</ref><ref>{{cite web |title=As sanctions loomed, accounting giant PwC scrambled to keep powerful Russians a step ahead |url=https://www.icij.org/investigations/cyprus-confidential/pwc-cyprus-russia-oligarchs-ukraine-sanctions/ |date=14 November 2023}}</ref> | Following the [[2022 Russian invasion of Ukraine]], Cyprus businesses and individuals have come under scrutiny and criticism for allowing EU and US sanctions to be breached with belated attempts to stop them or bring the culprits to justice. A number of professional law and accounting firms have been identified as helping Russian Oligarchs evade sanctions.<ref>{{cite web |title='Our credibility must be safeguarded': Cyprus in turmoil after Russia sanctions |website=[[TheGuardian.com]] |url=https://www.theguardian.com/world/2023/apr/22/cyprus-russia-sanctions-us-uk |date=22 April 2023}}</ref><ref>{{cite web |title=Cyprus handed 800-page US dossier on Russia sanctions breaches |website=[[TheGuardian.com]] |url=https://www.theguardian.com/world/2023/may/09/cyprus-handed-800-page-us-dossier-on-russia-sanctions-breaches |date=9 May 2023}}</ref><ref>{{cite web |title=Five law firms under sanctions-busting spotlight |url=https://www.financialmirror.com/2023/05/18/five-law-firms-under-sanctions-busting-spotlight/ |date=18 May 2023}}</ref><ref>{{cite web |title=As sanctions loomed, accounting giant PwC scrambled to keep powerful Russians a step ahead |url=https://www.icij.org/investigations/cyprus-confidential/pwc-cyprus-russia-oligarchs-ukraine-sanctions/ |date=14 November 2023}}</ref> | ||
In January 2024, during a Council of Europe Parliamentary Assembly, Cypriot President [[Nikos Christodoulides]] maintained that Cyprus had fully implemented all European Union sanctions against Russia.<ref>{{cite web |title=Address by His Excellency Mr Nikos CHRISTODOULIDES, President of the Republic of Cyprus |url=https://vodmanager.coe.int/coe/webcast/coe/2024-01-23-1/en/4 |website=COE.INT |publisher=Council of Europe |access-date=21 May 2024}}</ref> Around the same time of his speech, it was reported that Russian deposits held in Cypriot banks had fallen 76% from 2014 to 2022. The number of Russian clients using Cypriot banks also dropped 82% in the same period.<ref>{{cite web |title=Why is Cyprus seeing Russian bank deposits plunge? |url=https://www.euronews.com/business/2024/01/24/why-is-cyprus-seeing-russian-bank-deposits-plunge |website=Euronews |access-date=21 May 2024}}</ref> | In January 2024, during a Council of Europe Parliamentary Assembly, Cypriot President [[Nikos Christodoulides]] maintained that Cyprus had fully implemented all European Union sanctions against Russia.<ref>{{cite web |title=Address by His Excellency Mr Nikos CHRISTODOULIDES, President of the Republic of Cyprus |url=https://vodmanager.coe.int/coe/webcast/coe/2024-01-23-1/en/4 |website=COE.INT |publisher=Council of Europe |access-date=21 May 2024}}</ref> Around the same time of his speech, it was reported that Russian deposits held in Cypriot banks had fallen 76% from 2014 to 2022. The number of Russian clients using Cypriot banks also dropped 82% in the same period.<ref>{{cite web |title=Why is Cyprus seeing Russian bank deposits plunge? |url=https://www.euronews.com/business/2024/01/24/why-is-cyprus-seeing-russian-bank-deposits-plunge |website=Euronews |date=24 January 2024 |access-date=21 May 2024}}</ref> | ||
==Agriculture== | ==Agriculture== | ||
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Cyprus produced in 2018: | Cyprus produced in 2018: | ||
* 106 thousand tons of | * 106 thousand tons of potato; | ||
* 37 thousand tons of [[tangerine]]; | * 37 thousand tons of [[tangerine]]; | ||
* 23 thousand tons of | * 23 thousand tons of grape; | ||
* 20 thousand tons of | * 20 thousand tons of orange; | ||
* 19 thousand tons of [[grapefruit]]; | * 19 thousand tons of [[grapefruit]]; | ||
* 19 thousand tons of [[olive]]; | * 19 thousand tons of [[olive]]; | ||
* 18 thousand tons of | * 18 thousand tons of wheat; | ||
* 18 thousand tons of [[barley]]; | * 18 thousand tons of [[barley]]; | ||
* 15 thousand tons of | * 15 thousand tons of tomato; | ||
* 13 thousand tons of [[watermelon]]; | * 13 thousand tons of [[watermelon]]; | ||
* 10 thousand tons of | * 10 thousand tons of melon, | ||
in addition to smaller productions of other agricultural products.<ref>{{cite web| url = http://www.fao.org/faostat/en/#data/QC/| title = Cyprus production in 2018, by FAO}}</ref> | in addition to smaller productions of other agricultural products.<ref>{{cite web| url = http://www.fao.org/faostat/en/#data/QC/| title = Cyprus production in 2018, by FAO}}</ref> | ||
==Oil and gas== | ==Oil and gas== | ||
Surveys suggest more than 100 trillion cubic feet (2.831 trillion cubic metres) of [[Natural gas by country|reserves]] lie untapped in the eastern Mediterranean basin between Cyprus and Israel – almost equal to the world's total annual consumption of natural gas.<ref>[http://in.reuters.com/article/energy-cyprus-gas-idINL6E8I63R920120706 Cyprus hopes gas export income will flow by 2019] {{Webarchive|url=https://web.archive.org/web/20190528215025/https://in.reuters.com/article/energy-cyprus-gas-idINL6E8I63R920120706 |date=28 May 2019 }} Reuters.com 6 July 2012</ref> In 2011, [[Noble Energy]] estimated that a pipeline to [[Leviathan gas field]] could be in operation as soon as 2014 or 2015.<ref name="Oil and gas for Cyprus and Israel">[https://www.economist.com/blogs/theworldin2012/2011/11/oil-and-gas-cyprus-and-israel Oil and gas for Cyprus and Israel] Economist.com 15 November 2011</ref> In January 2012, Noble Energy announced a natural gas field discovery.<ref name=":0">{{Cite web|url=https://www2.deloitte.com/content/dam/Deloitte/cy/Documents/energy-resources/oil-and-gas/CY_EnergyAndResources_OilAndGas_Noexp.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www2.deloitte.com/content/dam/Deloitte/cy/Documents/energy-resources/oil-and-gas/CY_EnergyAndResources_OilAndGas_Noexp.pdf |archive-date=2022 | Surveys suggest more than 100 trillion cubic feet (2.831 trillion cubic metres) of [[Natural gas by country|reserves]] lie untapped in the eastern Mediterranean basin between Cyprus and Israel – almost equal to the world's total annual consumption of natural gas.<ref>[http://in.reuters.com/article/energy-cyprus-gas-idINL6E8I63R920120706 Cyprus hopes gas export income will flow by 2019] {{Webarchive|url=https://web.archive.org/web/20190528215025/https://in.reuters.com/article/energy-cyprus-gas-idINL6E8I63R920120706 |date=28 May 2019 }} Reuters.com 6 July 2012</ref> In 2011, [[Noble Energy]] estimated that a pipeline to [[Leviathan gas field]] could be in operation as soon as 2014 or 2015.<ref name="Oil and gas for Cyprus and Israel">[https://www.economist.com/blogs/theworldin2012/2011/11/oil-and-gas-cyprus-and-israel Oil and gas for Cyprus and Israel] Economist.com 15 November 2011</ref> In January 2012, Noble Energy announced a natural gas field discovery.<ref name=":0">{{Cite web|url=https://www2.deloitte.com/content/dam/Deloitte/cy/Documents/energy-resources/oil-and-gas/CY_EnergyAndResources_OilAndGas_Noexp.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www2.deloitte.com/content/dam/Deloitte/cy/Documents/energy-resources/oil-and-gas/CY_EnergyAndResources_OilAndGas_Noexp.pdf |archive-date=9 October 2022 |url-status=live|title=Cyprus {{!}} Oil & Gas|date=2018|publisher=[[Deloitte]]|access-date=24 April 2020}}</ref> It attracted [[Royal Dutch Shell|Shell]], [[Delek]] and Avner as partners.<ref name=":0" /> Several [[Production sharing agreement|production sharing contracts]] for exploration were signed with international companies, including [[Eni]], [[Korea Gas Corporation|KOGAS]], [[TotalEnergies]], [[ExxonMobil]] and [[QatarEnergy]].<ref>{{Cite web|url=https://lebanongasnews.com/wp/production-sharing-contract-signed-for-cyprus-block-10/|title=Production Sharing contract signed for Cyprus block 10|date=5 April 2017|website=Lebanon Gas News|language=en-US|access-date=29 April 2020|archive-date=19 April 2021|archive-url=https://web.archive.org/web/20210419211246/https://lebanongasnews.com/wp/production-sharing-contract-signed-for-cyprus-block-10/|url-status=dead}}</ref><ref name=":0" /> It is necessary to develop infrastructure for landing the gas in Cyprus and for [[Liquefied natural gas|liquefaction]] for export.<ref name=":0" /> | ||
==Role as a shipping hub== | ==Role as a shipping hub== | ||
{{main|Cyprus Merchant Marine}} | {{main|Cyprus Merchant Marine}} | ||
[[File:Cranes Limassol Harbour 20110703.jpg|thumb|250px|The port of [[Limassol]], the busiest in Cyprus]] | [[File:Cranes Limassol Harbour 20110703.jpg|thumb|250px|The port of [[Limassol]], the busiest in Cyprus]] | ||
Cyprus constitutes one of the largest [[ship management]] centers in the world; around 50 ship management companies and marine-related foreign enterprises are conducting their international activities in the country while the majority of the largest ship management companies in the world have established fully fledged offices on the island.<ref>[http://www.cyprusshipping.com/limassol-shipping-companies.html Limassol Based Shipping Companies] CyprusShipping.com</ref> Its geographical position at the crossroads of three continents and its proximity to the [[Suez Canal]] has promoted [[Cyprus Merchant Marine|merchant shipping]] as an important industry for the island nation. Cyprus has the tenth-largest registered fleet in the world, with 1,030 vessels accounting for 31,706,000 [[deadweight tonnage|dwt]] as of 1 January 2013.<ref>{{cite web|title=Review of Maritime Transport 2013|url=http://unctad.org/en/PublicationsLibrary/rmt2013_en.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://unctad.org/en/PublicationsLibrary/rmt2013_en.pdf |archive-date=2022 | Cyprus constitutes one of the largest [[ship management]] centers in the world; around 50 ship management companies and marine-related foreign enterprises are conducting their international activities in the country while the majority of the largest ship management companies in the world have established fully fledged offices on the island.<ref>[http://www.cyprusshipping.com/limassol-shipping-companies.html Limassol Based Shipping Companies] CyprusShipping.com</ref> Its geographical position at the crossroads of three continents and its proximity to the [[Suez Canal]] has promoted [[Cyprus Merchant Marine|merchant shipping]] as an important industry for the island nation. Cyprus has the tenth-largest registered fleet in the world, with 1,030 vessels accounting for 31,706,000 [[deadweight tonnage|dwt]] as of 1 January 2013.<ref>{{cite web|title=Review of Maritime Transport 2013|url=http://unctad.org/en/PublicationsLibrary/rmt2013_en.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://unctad.org/en/PublicationsLibrary/rmt2013_en.pdf |archive-date=9 October 2022 |url-status=live|publisher=[[United Nations Conference on Trade and Development]]|access-date=16 November 2014|location=Geneva}}</ref><ref>{{cite web| url = http://directories.lloydslist.com/services-browse/ss/3123/country/Cyprus| title = Lloyds Ship Management Directory}}</ref> | ||
==Tourism== | ==Tourism== | ||
{{main|Tourism in Cyprus}} | {{main|Tourism in Cyprus}} | ||
Tourism is an important factor of the island state's economy, culture, and overall brand development. With over 2 million tourist arrivals per year, it is the 40th most popular destination in the world. However, per capita of local population, it ranks 17th.<ref>{{cite web|url=http://www.nationmaster.com/graph/eco_tou_arr_percap-economy-tourist-arrivals-per-capita |title=Economy Statistics – Tourist arrivals (per capita) (most recent) by country |access-date=17 January 2018 |work=Nationmaster }}</ref> The industry has been honored with various international awards, spanning from the Sustainable Destinations Global Top 100, VISION on Sustainable Tourism, Totem Tourism and Green Destination titles bestowed to [[Limassol]] and [[Paphos]] in December 2014.<ref>{{cite web| url = http://www.kpmg.com/CY/en/IssuesAndInsights/ArticlesAndPublications/Documents/2015-documents/Cyprus-Tourism-Market-Report.pdf| title = KPMG: Cyprus Tourism Market Report| date = 27 October 2022}}</ref><ref>{{cite web| url = https://www.ucy.ac.cy/erc/documents/Full_Text_Clerides.pdf| title = Tourism in Cyprus: Recent Trends and Lessons from the Tourist Satisfaction Survey}}</ref><ref>{{cite web| url = http://www.worldtravelguide.net/cyprus| title = World Travel Guide}}</ref> The island beaches have been awarded with 57 [[Blue Flag beach|Blue Flags]]. Cyprus became a full member of the [[World Tourism Organization]] when it was created in 1975.<ref>{{cite web |url=http://www.unwto.org/states/eng.html |archive-url=https://web.archive.org/web/20060620051928/http://www.unwto.org/states/eng.html |url-status=dead |archive-date=20 June 2006 |title=UNWTO member states |access-date=2 March 2007 |publisher=World Tourism Organization (UNWTO)}}</ref> According to the [[World Economic Forum]]'s 2013 Travel and Tourism Competitiveness Index, Cyprus' tourism industry ranks 29th in the world in terms of overall competitiveness. In terms of Tourism Infrastructure, in relation to the tourism industry Cyprus ranks 1st in the world. The Cyprus Tourism Organization has a status of a semi-governmental organisation charged with overseeing the industry practices and promoting the island worldwide.<ref>{{cite news |title=Travel and Tourism Competitiveness Index |year=2011 |url=https://www.scribd.com/doc/51084876/Cyprus-Travel-Tourism-Competitiveness-Report-2011-Country-Profile |work=[[World Economic Forum]] |access-date=1 June 2011}}</ref> | Tourism is an important factor of the island state's economy, culture, and overall brand development. With over 2 million tourist arrivals per year, it is the 40th most popular destination in the world. However, per capita of local population, it ranks 17th.<ref>{{cite web|url=http://www.nationmaster.com/graph/eco_tou_arr_percap-economy-tourist-arrivals-per-capita |title=Economy Statistics – Tourist arrivals (per capita) (most recent) by country |access-date=17 January 2018 |work=Nationmaster }}</ref> The industry has been honored with various international awards, spanning from the Sustainable Destinations Global Top 100, VISION on Sustainable Tourism, Totem Tourism and Green Destination titles bestowed to [[Limassol]] and [[Paphos]] in December 2014.<ref>{{cite web| url = http://www.kpmg.com/CY/en/IssuesAndInsights/ArticlesAndPublications/Documents/2015-documents/Cyprus-Tourism-Market-Report.pdf| title = KPMG: Cyprus Tourism Market Report| date = 27 October 2022}}</ref><ref>{{cite web| url = https://www.ucy.ac.cy/erc/documents/Full_Text_Clerides.pdf| title = Tourism in Cyprus: Recent Trends and Lessons from the Tourist Satisfaction Survey}}</ref><ref>{{cite web| url = http://www.worldtravelguide.net/cyprus| title = World Travel Guide}}</ref> The island beaches have been awarded with 57 [[Blue Flag beach|Blue Flags]]. Cyprus became a full member of the [[World Tourism Organization]] when it was created in 1975.<ref>{{cite web |url=http://www.unwto.org/states/eng.html |archive-url=https://web.archive.org/web/20060620051928/http://www.unwto.org/states/eng.html |url-status=dead |archive-date=20 June 2006 |title=UNWTO member states |access-date=2 March 2007 |publisher=World Tourism Organization (UNWTO)}}</ref> According to the [[World Economic Forum]]'s 2013 Travel and Tourism Competitiveness Index, Cyprus' tourism industry ranks 29th in the world in terms of overall competitiveness. In terms of Tourism Infrastructure, in relation to the tourism industry Cyprus ranks 1st in the world. The Cyprus Tourism Organization has a status of a semi-governmental organisation charged with overseeing the industry practices and promoting the island worldwide.<ref>{{cite news |title=Travel and Tourism Competitiveness Index |year=2011 |url=https://www.scribd.com/doc/51084876/Cyprus-Travel-Tourism-Competitiveness-Report-2011-Country-Profile |work=[[World Economic Forum]] |access-date=1 June 2011}}</ref> | ||
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In 2014, [[Harris Georgiades]] pointed that exiting the Memorandum with the [[European troika]] required a return to the [[Market (economics)|markets]]. This he said, required "timely, effective and full implementation of the program." The Finance Minister stressed the need to implement the [[Memorandum of understanding]] without an additional loan.<ref>{{cite web| url = http://financialmirror.com/news-details.php?nid=31276| title = Financial Mirror: Bank restrictions to be lifted by Spring 2014, says Cyprus Finance Minister| date = 22 October 2013| access-date = 3 August 2016| archive-date = 18 October 2016| archive-url = https://web.archive.org/web/20161018073400/http://financialmirror.com/news-details.php?nid=31276| url-status = dead}}</ref> | In 2014, [[Harris Georgiades]] pointed that exiting the Memorandum with the [[European troika]] required a return to the [[Market (economics)|markets]]. This he said, required "timely, effective and full implementation of the program." The Finance Minister stressed the need to implement the [[Memorandum of understanding]] without an additional loan.<ref>{{cite web| url = http://financialmirror.com/news-details.php?nid=31276| title = Financial Mirror: Bank restrictions to be lifted by Spring 2014, says Cyprus Finance Minister| date = 22 October 2013| access-date = 3 August 2016| archive-date = 18 October 2016| archive-url = https://web.archive.org/web/20161018073400/http://financialmirror.com/news-details.php?nid=31276| url-status = dead}}</ref> | ||
In 2015, Cyprus was praised by the [[President of the European Commission]] for adopting the austerity measures and not hesitating to follow a tough reform program.<ref>{{cite web| url = http://www.businessinsider.com/afp-eus-juncker-praises-cyprus-recovery-after-bailout-2015-7| title = Business Insider: EU's Juncker praises Cyprus recovery after bailout| website = [[Business Insider]]}}</ref><ref>{{cite web| url = http://cyprus-mail.com/2016/01/14/eurogroup-full-of-praise-for-cyprus-but-obligations-remain/| title = Cyprus Mail: Eurogroup full of praise for Cyprus but some obligations remain | In 2015, Cyprus was praised by the [[President of the European Commission]] for adopting the austerity measures and not hesitating to follow a tough reform program.<ref>{{cite web| url = http://www.businessinsider.com/afp-eus-juncker-praises-cyprus-recovery-after-bailout-2015-7| title = Business Insider: EU's Juncker praises Cyprus recovery after bailout| website = [[Business Insider]]}}</ref><ref>{{cite web| url = http://cyprus-mail.com/2016/01/14/eurogroup-full-of-praise-for-cyprus-but-obligations-remain/| title = Cyprus Mail: Eurogroup full of praise for Cyprus but some obligations remain| access-date = 3 August 2016| archive-date = 21 August 2016| archive-url = https://web.archive.org/web/20160821224419/http://cyprus-mail.com/2016/01/14/eurogroup-full-of-praise-for-cyprus-but-obligations-remain/| url-status = dead}}</ref> | ||
In 2016, [[Moody's Investors Service]] changed its outlook on the Cypriot banking system to positive from stable, reflecting the view that the recovery will restore banks to profitability and improve asset quality. The quick economic recovery was driven by tourism, business services and increased consumer spending. Creditor confidence was also strengthened, allowing Bank of Cyprus to reduce its Emergency Liquidity Assistance to €2.0 billion (from €9.4 billion in 2013).<ref>{{cite web| url = http://www.goldnews.com.cy/en/economy/moody%60s-changes-outlook-on-cypriot-banking-system-to-positive-from-stable| title = Gold Magazine: Moody's Changes Outlook on Cypriot Banking System to Positive from Stable| access-date = 3 August 2016| archive-date = 19 April 2021| archive-url = https://web.archive.org/web/20210419211246/http://www.goldnews.com.cy/en/economy/moody%60s-changes-outlook-on-cypriot-banking-system-to-positive-from-stable| url-status = dead}}</ref> Within the same period, Bank of Cyprus chairman [[Josef Ackermann]] urged the | In 2016, [[Moody's Investors Service]] changed its outlook on the Cypriot banking system to positive from stable, reflecting the view that the recovery will restore banks to profitability and improve asset quality. The quick economic recovery was driven by tourism, business services and increased consumer spending. Creditor confidence was also strengthened, allowing Bank of Cyprus to reduce its Emergency Liquidity Assistance to €2.0 billion (from €9.4 billion in 2013).<ref>{{cite web| url = http://www.goldnews.com.cy/en/economy/moody%60s-changes-outlook-on-cypriot-banking-system-to-positive-from-stable| title = Gold Magazine: Moody's Changes Outlook on Cypriot Banking System to Positive from Stable| access-date = 3 August 2016| archive-date = 19 April 2021| archive-url = https://web.archive.org/web/20210419211246/http://www.goldnews.com.cy/en/economy/moody%60s-changes-outlook-on-cypriot-banking-system-to-positive-from-stable| url-status = dead}}</ref> Within the same period, Bank of Cyprus chairman [[Josef Ackermann]] urged the European Union to pledge financial support for a permanent solution to the [[Cyprus dispute]].<ref>{{cite web| url = http://cyprus-mail.com/2016/08/03/bocs-ackermann-urges-eu-pledge-financial-support-solution/| title = BoC's Ackermann urges EU to pledge financial support for solution| access-date = 3 August 2016| archive-date = 4 March 2021| archive-url = https://web.archive.org/web/20210304190005/https://cyprus-mail.com/2016/08/03/bocs-ackermann-urges-eu-pledge-financial-support-solution/| url-status = dead}}</ref> | ||
== Statistics == | == Statistics == | ||
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== Economy of Northern Cyprus == | == Economy of Northern Cyprus == | ||
{{main|Economy of Northern Cyprus}} | {{main|Economy of Northern Cyprus}} | ||
The economy of Turkish-occupied northern Cyprus is about one-fifth the size of the economy of the government-controlled area, while GDP per capita is around half. Because the ''de facto'' administration is recognized only by [[Turkey]], it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. The economy mainly revolves around the agricultural sector and government service, which together employ about half of the work force. | The economy of Turkish-occupied northern Cyprus is about one-fifth the size of the economy of the government-controlled area, while GDP per capita is around half. Because the ''de facto'' administration is recognized only by [[Turkey]], it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. The economy mainly revolves around the agricultural sector and government service, which together employ about half of the work force. | ||
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== Happiness == | == Happiness == | ||
Economic factors such as the GDP and national income strongly correlate with the [[Happiness economics|happiness]] of a nation's citizens.<ref>{{Cite journal|last1=Tella|first1=Rafael Di|last2=MacCulloch|first2=Robert J.|last3=Oswald|first3=Andrew J.|date=November 2003|title=The Macroeconomics of Happiness|journal=Review of Economics and Statistics|volume=85|issue=4|pages=809–827|doi=10.1162/003465303772815745|issn=0034-6535|citeseerx=10.1.1.11.3175|s2cid=1914665}}</ref> In a study published in 2005,<ref>{{Cite journal|last1=Blanchflower|first1=David G.|last2=Oswald|first2=Andrew J.|date=September 2005|title=Happiness and the Human Development Index: The Paradox of Australia|journal=The Australian Economic Review|volume=38|issue=3|pages=307–318|doi=10.1111/j.1467-8462.2005.00377.x|issn=0004-9018|url=http://wrap.warwick.ac.uk/318/1/WRAP_Oswald_ausbloswald2005.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://wrap.warwick.ac.uk/318/1/WRAP_Oswald_ausbloswald2005.pdf |archive-date=2022 | Economic factors such as the GDP and national income strongly correlate with the [[Happiness economics|happiness]] of a nation's citizens.<ref>{{Cite journal|last1=Tella|first1=Rafael Di|last2=MacCulloch|first2=Robert J.|last3=Oswald|first3=Andrew J.|date=November 2003|title=The Macroeconomics of Happiness|journal=Review of Economics and Statistics|volume=85|issue=4|pages=809–827|doi=10.1162/003465303772815745|issn=0034-6535|citeseerx=10.1.1.11.3175|s2cid=1914665}}</ref> In a study published in 2005,<ref>{{Cite journal|last1=Blanchflower|first1=David G.|last2=Oswald|first2=Andrew J.|date=September 2005|title=Happiness and the Human Development Index: The Paradox of Australia|journal=The Australian Economic Review|volume=38|issue=3|pages=307–318|doi=10.1111/j.1467-8462.2005.00377.x|issn=0004-9018|url=http://wrap.warwick.ac.uk/318/1/WRAP_Oswald_ausbloswald2005.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://wrap.warwick.ac.uk/318/1/WRAP_Oswald_ausbloswald2005.pdf |archive-date=9 October 2022 |url-status=live}}</ref> citizens from a sample of countries were asked to rate how happy or unhappy they were as a whole on a scale of 1 to 7 (Ranking: 1. Completely happy, 2. Very happy, 3. Fairly happy,4. Neither happy nor unhappy, 5. Fairly unhappy, 6. Very unhappy, 7. Completely unhappy.) Cyprus had a score of 5.29. On the question of how satisfied citizens were with their main job, Cyprus scored 5.36 on a scale of 1 to 7 (Ranking: 1. Completely satisfied, 2. Very satisfied, 3. Fairly satisfied, 4. Neither satisfied nor dissatisfied, 5. Fairly dissatisfied, 6. Very dissatisfied, 7. Completely dissatisfied.) In another ranking of happiness, Northern Cyprus ranks 58 and Cyprus ranks 61, according to the 2018 World Happiness Report.<ref>{{Cite news|url=http://worldhappiness.report/ed/2018/|title=World Happiness Report 2018|last=Report|first=World Happiness|date=14 March 2018|work=World Happiness Report|access-date=4 May 2018}}</ref> The report rates 156 countries based on variables including income, healthy life expectancy, social support, freedom, trust, and generosity. | ||
Economic factors play a significant role in the general life satisfaction of Cyprus citizens, especially with women who participate in the [[labor force]] at a lower rate, work in lower ranks, and work in more public and service sector jobs than the men.<ref>{{cite journal|jstor=24720448|title=Factors that Influence the Life Satisfaction of Women Living in the Northern Cyprus|journal=Social Indicators Research|volume=115|issue=3|pages=1071–1085|last1=Gokdemir|first1=Ozge|last2=Tahsin|first2=Emine|year=2014|doi=10.1007/s11205-013-0265-3|s2cid=144546661}}</ref> Women of different skill-sets and "differing economic objectives and constraints" participate in the tourism industry.<ref>{{Cite book|title=Gender, work, and tourism|date=1997|publisher=Routledge|others=Sinclair, M. Thea.|isbn=978-0415109857|location=London|oclc=36350641|url-access=registration|url=https://archive.org/details/genderworktouris0000unse}}</ref> Women participate in this industry through jobs like hotel work to serve and/or bring pride to their family, not necessarily to satisfy their own selves. In this study, women with income higher than the mean household income reported higher levels of satisfaction with their lives while those with lower income reported the opposite. When asked who they compare themselves with (those with lower, same, or higher economic status), results showed that those that compared themselves with people of higher economic statuses than them had the lowest level of life satisfaction. While the correlation of income and happiness is positive, it is significantly low; there is stronger correlation between comparison and happiness. This indicates that not only income level but income level in relation to that of others affects their amount of life satisfaction. | Economic factors play a significant role in the general life satisfaction of Cyprus citizens, especially with women who participate in the [[labor force]] at a lower rate, work in lower ranks, and work in more public and service sector jobs than the men.<ref>{{cite journal|jstor=24720448|title=Factors that Influence the Life Satisfaction of Women Living in the Northern Cyprus|journal=Social Indicators Research|volume=115|issue=3|pages=1071–1085|last1=Gokdemir|first1=Ozge|last2=Tahsin|first2=Emine|year=2014|doi=10.1007/s11205-013-0265-3|s2cid=144546661}}</ref> Women of different skill-sets and "differing economic objectives and constraints" participate in the tourism industry.<ref>{{Cite book|title=Gender, work, and tourism|date=1997|publisher=Routledge|others=Sinclair, M. Thea.|isbn=978-0415109857|location=London|oclc=36350641|url-access=registration|url=https://archive.org/details/genderworktouris0000unse}}</ref> Women participate in this industry through jobs like hotel work to serve and/or bring pride to their family, not necessarily to satisfy their own selves. In this study, women with income higher than the mean household income reported higher levels of satisfaction with their lives while those with lower income reported the opposite. When asked who they compare themselves with (those with lower, same, or higher economic status), results showed that those that compared themselves with people of higher economic statuses than them had the lowest level of life satisfaction. While the correlation of income and happiness is positive, it is significantly low; there is stronger correlation between comparison and happiness. This indicates that not only income level but income level in relation to that of others affects their amount of life satisfaction. | ||
Classified as a Mediterranean welfare regime,<ref>{{Cite journal|last=Trifiletti|first=Rossana|title=Southern European Welfare Regimes and the Worsening Position of Women|journal=Journal of European Social Policy|volume=9|pages=49–64|doi=10.1177/095892879900900103|year=1999|s2cid=154553964}}</ref><ref>{{Cite journal|last=Gal|first=John|title=Is there an extended family of Mediterranean welfare states?|journal=Journal of European Social Policy |volume=20 |issue=4 |year=2010 |pages=283–300|doi=10.1177/0958928710374374|s2cid=154681675}}</ref> Cyprus has a weak public Welfare system. This means there is a strong reliance on the family, instead of the state, for both familial and economic support.<ref>{{Cite journal|last1=Aassve|first1=Arnstein|last2=Goisis|first2=Alice|last3=Sironi|first3=Maria|date=1 August 2012|title=Happiness and Childbearing Across Europe|journal=Social Indicators Research|volume=108|issue=1|pages=65–86|doi=10.1007/s11205-011-9866-x|s2cid=18133359|issn=0303-8300|url=http://discovery.ucl.ac.uk/1490241/1/Aassve_AAM_happiness_and_childbearing_across_europe.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://discovery.ucl.ac.uk/1490241/1/Aassve_AAM_happiness_and_childbearing_across_europe.pdf |archive-date=2022 | Classified as a Mediterranean welfare regime,<ref>{{Cite journal|last=Trifiletti|first=Rossana|title=Southern European Welfare Regimes and the Worsening Position of Women|journal=Journal of European Social Policy|volume=9|pages=49–64|doi=10.1177/095892879900900103|year=1999|s2cid=154553964}}</ref><ref>{{Cite journal|last=Gal|first=John|title=Is there an extended family of Mediterranean welfare states?|journal=Journal of European Social Policy |volume=20 |issue=4 |year=2010 |pages=283–300|doi=10.1177/0958928710374374|s2cid=154681675}}</ref> Cyprus has a weak public Welfare system. This means there is a strong reliance on the family, instead of the state, for both familial and economic support.<ref>{{Cite journal|last1=Aassve|first1=Arnstein|last2=Goisis|first2=Alice|last3=Sironi|first3=Maria|date=1 August 2012|title=Happiness and Childbearing Across Europe|journal=Social Indicators Research|volume=108|issue=1|pages=65–86|doi=10.1007/s11205-011-9866-x|s2cid=18133359|issn=0303-8300|url=http://discovery.ucl.ac.uk/1490241/1/Aassve_AAM_happiness_and_childbearing_across_europe.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://discovery.ucl.ac.uk/1490241/1/Aassve_AAM_happiness_and_childbearing_across_europe.pdf |archive-date=9 October 2022 |url-status=live}}</ref> Another finding is that being a full-time housewife has a stronger negative effect on happiness for women of Northern Cyprus than being unemployed, showing how the combination of gender and the economic factor of participating in the labor force affects life satisfaction. Economic factors also negatively correlate with the happiness levels of those that live in the capital city: citizens living in the capital express lower levels of happiness.<ref>{{Cite journal|last=Piper|first=Alan T.|date=1 August 2015|title=Europe's Capital Cities and the Happiness Penalty: An Investigation Using the European Social Survey|journal=Social Indicators Research|volume=123|issue=1|pages=103–126|doi=10.1007/s11205-014-0725-4|s2cid=53402465|issn=0303-8300|url=https://mpra.ub.uni-muenchen.de/47793/1/MPRA_paper_47793.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://mpra.ub.uni-muenchen.de/47793/1/MPRA_paper_47793.pdf |archive-date=9 October 2022 |url-status=live}}</ref> As found in this study, citizens of Cyprus that live in its capital, Nicosia, are significantly less happy than others whether or not socio-economic variables are controlled for. Another finding was that the young people in the capital are unhappier than the rest of Cyprus; the old are not. | ||
==See also== | ==See also== | ||
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==References== | ==References== | ||
{{Reflist}} | {{Reflist}} | ||
*[https://www.cia.gov/the-world-factbook/countries/cyprus/ Cyprus]. ''[[The World Factbook]]''. [[Central Intelligence Agency]]. | *[https://web.archive.org/web/20260118111834/https://www.cia.gov/the-world-factbook/countries/cyprus/ Cyprus]. ''[[The World Factbook]]''. [[Central Intelligence Agency]]. | ||
{{Cyprus topics}} | {{Cyprus topics}} | ||