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Cyprus Economy 2017
https://theodora.com/wfbcurrent/cyprus/cyprus_economy.html
SOURCE: 2017 CIA WORLD FACTBOOK AND OTHER SOURCES











Cyprus Economy 2017
SOURCE: 2017 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on January 12, 2017

Economy - overview:
The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for more than four-fifths of GDP. Tourism, financial services, shipping, and real estate have traditionally been the most important sectors. Cyprus has been a member of the EU since May 2004 and adopted the euro as its national currency in January 2008.During the first five years of EU membership, the Cyprus economy grew at an average rate of about 4%, with unemployment between 2004 and 2008 averaging about 4%. However, the economy tipped into recession in 2009 as the ongoing global financial crisis and resulting low demand hit the tourism and construction sectors. An overextended banking sector with excessive exposure to Greek debt added to the contraction. Cyprus’ biggest two banks were among the largest holders of Greek bonds in Europe and had a substantial presence in Greece through bank branches and subsidiaries. Following numerous downgrades of its credit rating, Cyprus lost access to international capital markets in May 2011. In July 2012, Cyprus became the fifth euro-zone government to request an economic bailout program from the European Commission, European Central Bank and the International Monetary Fund - known collectively as the "Troika."Shortly after the election of President Nikos ANASTASIADES in February 2013, Cyprus reached an agreement with the Troika on a $13 billion bailout that resulted in losses on uninsured bank deposits. The bailout triggered a two-week bank closure and the imposition of capital controls that remained partially in place until April 2015. Cyprus' two largest banks merged and the combined entity was recapitalized through conversion of some large bank deposits to shares and imposition of losses on bank bondholders. As with other EU countries, the Troika conditioned the bailout on passing financial and structural reforms and privatizing state-owned enterprises. Despite downsizing and restructuring, the Cypriot financial sector throughout 2015 remained burdened by the largest stock of non-performing loans in the euro zone, equal to nearly half of all loans. Since the bailout, Cyprus has received positive appraisals by the Troika and outperformed fiscal targets but has struggled to overcome political opposition to bailout-mandated legislation, particularly regarding privatizations. Cyprus emerged from recession in 2015 and its economy grew an estimated 1.6% for the year, setting a positive tone for the scheduled end of the bailout program in March 2016.In October 2013, a US-Israeli consortium completed preliminary appraisals of hydrocarbon deposits in Cyprus’ exclusive economic zone (EEZ), which revealed an estimated gross mean reserve of about 130 billion cubic meters. Though exploration continues in Cyprus’ EEZ, no additional commercially exploitable reserves were identified during the exploratory drilling in 2014/2015. Developing offshore hydrocarbon resources remains a critical component of the government’s economic recovery efforts, but development has been delayed as a result of regional developments and disagreements about exploitation methods.
Economy - overview: Even though the whole of the island is part of the EU, implementation of the EU "acquis communautaire" has been suspended in the area administered by Turkish Cypriots, known locally as the "Turkish Republic of Northern Cyprus" ("TRNC"), until political conditions permit the reunification of the island. The market-based economy of the "TRNC" is roughly one-fifth the size of its southern neighbor and is likewise dominated by the service sector with a large portion of the population employed by the government. In 2012 - the latest year for which data are available - the services sector, which includes the public sector, trade, tourism, and education, contributed 58.7% to economic output. In the same year, light manufacturing and agriculture contributed 2.7% and 6.2%, respectively. Manufacturing is limited mainly to food and beverages, furniture and fixtures, construction materials, metal and non-metal products, textiles and clothing. The “TRNC” maintains few economic ties with the Republic of Cyprus outside of trade in construction materials. Since its creation, the "TRNC" has heavily relied on financial assistance from Turkey, which supports the "TRNC" defense, telecommunications, water and postal services. The Turkish Lira is the preferred currency, though foreign currencies are widely accepted in business transactions. The "TRNC" remains vulnerable to the Turkish market and monetary policy because of its use of the Turkish Lira. The "TRNC" weathered the European financial crisis relatively unscathed - compared to the Republic of Cyprus - because of the lack of financial sector development, the health of the Turkish economy, and its separation from the rest of the island. The "TRNC" economy experienced growth estimated at 2.8% in 2013 and 2.3% in 2014 and is projected to grow 3.8% in 2015.

Economy of the area administered by Turkish Cypriots:
Economy - overview: Even though the whole of the island is part of the EU, implementation of the EU "acquis communautaire" has been suspended in the area administered by Turkish Cypriots, known locally as the "Turkish Republic of Northern Cyprus" ("TRNC"), until political conditions permit the reunification of the island. The market-based economy of the "TRNC" is roughly one-fifth the size of its southern neighbor and is likewise dominated by the service sector with a large portion of the population employed by the government. In 2012 - the latest year for which data are available - the services sector, which includes the public sector, trade, tourism, and education, contributed 58.7% to economic output. In the same year, light manufacturing and agriculture contributed 2.7% and 6.2%, respectively. Manufacturing is limited mainly to food and beverages, furniture and fixtures, construction materials, metal and non-metal products, textiles and clothing. The “TRNC” maintains few economic ties with the Republic of Cyprus outside of trade in construction materials. Since its creation, the "TRNC" has heavily relied on financial assistance from Turkey, which supports the "TRNC" defense, telecommunications, water and postal services. The Turkish Lira is the preferred currency, though foreign currencies are widely accepted in business transactions. The "TRNC" remains vulnerable to the Turkish market and monetary policy because of its use of the Turkish Lira. The "TRNC" weathered the European financial crisis relatively unscathed - compared to the Republic of Cyprus - because of the lack of financial sector development, the health of the Turkish economy, and its separation from the rest of the island. The "TRNC" economy experienced growth estimated at 2.8% in 2013 and 2.3% in 2014 and is projected to grow 3.8% in 2015.
GDP (purchasing power parity): $1.829 billion (2007 est.)
GDP - real growth rate: 2.3% (2014 est.) 2.8% (2013 est.)
GDP - per capita: $11,700 (2007 est.)
GDP - composition by sector: agriculture: 6.2%, industry: 35.1%, services: 58.7% (2012 est.)
Labor force: 95,030 (2007 est.)
Labor force - by occupation: agriculture: 14.5%, industry: 29%, services: 56.5% (2004)
Unemployment rate: 9.4% (2005 est.)
Population below poverty line: %NA
Inflation rate: 11.4% (2006)
Budget: revenues: $2.5 billion, expenditures: $2.5 billion (2006)
Agriculture - products: citrus fruit, dairy, potatoes, grapes, olives, poultry, lamb
Industries: foodstuffs, textiles, clothing, ship repair, clay, gypsum, copper, furniture
Industrial production growth rate: -0.3% (2007 est.)
Electricity production: 998.9 million kWh (2005)
Electricity consumption: 797.9 million kWh (2005)
Exports: $68.1 million, f.o.b. (2007 est.)
Export - commodities: citrus, dairy, potatoes, textiles
Export - partners: Turkey 40%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited
Imports: $1.2 billion, f.o.b. (2007 est.)
Import - commodities: vehicles, fuel, cigarettes, food, minerals, chemicals, machinery
Import - partners: Turkey 60%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited
Reserves of foreign exchange and gold: $NA
Debt - external: $NA
Currency (code): Turkish new lira (YTL)
Exchange rates: Turkish new lira per US dollar: 1.9 (2013) 1.8 (2012) 1.67 (2011) 1.5 (2010) 1.55 (2009)
[see also: GDP country ranks ]
[see also: GDP country ranks ]

GDP (purchasing power parity):
$29.26 billion (2016 est.) $28.47 billion (2015 est.) $28.05 billion (2014 est.)
note: data are in 2016 dollars
GDP (purchasing power parity): $1.829 billion (2007 est.)
country comparison to the world: 133
[see also: GDP country ranks ]

GDP (official exchange rate):
$19.93 billion (2015 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
2.8% (2016 est.) 1.5% (2015 est.) -2.5% (2014 est.)
GDP - real growth rate: 2.3% (2014 est.)
country comparison to the world: 107
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$34,400 (2016 est.) $33,600 (2015 est.) $32,700 (2014 est.)
note: data are in 2016 dollars
country comparison to the world: 57
[see also: GDP - per capita country ranks ]

Gross national saving:
9.5% of GDP (2016 est.) 11.7% of GDP (2015 est.) 8.6% of GDP (2014 est.)
country comparison to the world: 155
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 69.1%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 15.3%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 11.3%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 1.9%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 60.9%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -58.5% (2016 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 2.3%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 10.4%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 87.2% (2016 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
citrus, vegetables, barley, grapes, olives, vegetables; poultry, pork, lamb; dairy, cheese
Agriculture - products: citrus fruit, dairy, potatoes, grapes, olives, poultry, lamb

Industries:
tourism, food and beverage processing, cement and gypsum, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone and clay products
Industries: foodstuffs, textiles, clothing, ship repair, clay, gypsum, copper, furniture

Industrial production growth rate:
1.5% (2016 est.)
Industrial production growth rate: -0.3% (2007 est.)
country comparison to the world: 132
[see also: Industrial production growth rate country ranks ]

Labor force:
415,100 (2016 est.)
Labor force: 95,030 (2007 est.)
country comparison to the world: 159
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 3.8%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 15.2%
[see also: Labor force - by occupation - industry country ranks ]
services: 81% (2014 est.)
[see also: Labor force - by occupation - services country ranks ]
Labor force - by occupation: agriculture: 14.5%, industry: 29%, services: 56.5% (2004)

Unemployment rate:
11.8% (2016 est.) 14.9% (2015 est.)
Unemployment rate: 9.4% (2005 est.)
country comparison to the world: 133
[see also: Unemployment rate country ranks ]

Population below poverty line:
NA%
Population below poverty line: %NA
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.3%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 28.8% (2014)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
34.8 (2014 est.) 32.4 (2013 est.)
country comparison to the world: 95
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues:: $7.588 billion
[see also: Budget revenues country ranks ]
expenditures:: $7.809 billion (2016 est.)
[see also: Budget expenditures country ranks ]
Budget: revenues: $2.5 billion, expenditures: $2.5 billion (2006)

Taxes and other revenues:
38.1% of GDP (2016 est.)
country comparison to the world: 45
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-1.1% of GDP (2016 est.)
country comparison to the world: 50
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
104.6% of GDP (2016 est.) 108.9% of GDP (2015 est.)
note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data exclude debt issued by subnational entities, as well as int
country comparison to the world: 13
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
-0.3% (2016 est.) -2.1% (2015 est.)
country comparison to the world: 22
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0.05% (31 December 2013) 0.3% (31 December 2010)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
country comparison to the world: 154
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
4.5% (31 December 2016 est.) 4.69% (31 December 2015 est.)
country comparison to the world: 150
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$3.975 billion (31 December 2016 est.) $4.031 billion (31 December 2015 est.)
note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of
country comparison to the world: 106
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$43.41 billion (31 December 2014 est.) $47.99 billion (31 December 2013 est.)
country comparison to the world: 71
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$57.96 billion (31 December 2016 est.) $59.58 billion (31 December 2015 est.)
country comparison to the world: 63
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$2.692 billion (31 December 2015 est.) $4.031 billion (31 December 2014 est.) $2.105 billion (31 December 2013 est.)
country comparison to the world: 97
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$184 million (2016 est.) -$704 million (2015 est.)
country comparison to the world: 83
[see also: Current account balance country ranks ]

Exports:
$2.635 billion (2016 est.) $2.759 billion (2015 est.)
Exports: $68.1 million, f.o.b. (2007 est.)
country comparison to the world: 133
[see also: Exports country ranks ]

Exports - commodities:
citrus, potatoes, pharmaceuticals, cement, clothing

Exports - partners:
Greece 10.9%, Ireland 10.2%, UK 7.2%, Israel 6% (2015)

Imports:
$6.042 billion (2016 est.) $6.286 billion (2015 est.)
Imports: $1.2 billion, f.o.b. (2007 est.)
country comparison to the world: 115
[see also: Imports country ranks ]

Imports - commodities:
consumer goods, petroleum and lubricants, machinery, transport equipment

Imports - partners:
Greece 25.7%, UK 9.1%, Italy 8%, Germany 7.5%, Israel 5.5%, China 4.8%, Netherlands 4.1% (2015)

Reserves of foreign exchange and gold:
$776.8 million (31 December 2016 est.) $807.6 million (31 December 2015 est.)
Reserves of foreign exchange and gold: $NA
country comparison to the world: 132
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$95.28 billion (31 December 2013 est.) $103.5 billion (31 December 2012 est.)
Debt - external: $NA
country comparison to the world: 50
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$142.1 billion (31 December 2016 est.) $140.4 billion (31 December 2015 est.)
country comparison to the world: 38
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$136.8 billion (31 December 2016 est.) $135.2 billion (31 December 2015 est.)
country comparison to the world: 32
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
euros (EUR) per US dollar - 0.9214 (2016 est.) 0.885 (2015 est.) 0.885 (2014 est.) 0.7634 (2013 est.) 0.78 (2012 est.)
Exchange rates: Turkish new lira per US dollar: 1.9 (2013) 1.8 (2012) 1.67 (2011) 1.5 (2010) 1.55 (2009)

Economy of the area administered by Turkish Cypriots:
Economy - overview: Even though the whole of the island is part of the EU, implementation of the EU "acquis communautaire" has been suspended in the area administered by Turkish Cypriots, known locally as the "Turkish Republic of Northern Cyprus" ("TRNC"), until political conditions permit the reunification of the island. The market-based economy of the "TRNC" is roughly one-fifth the size of its southern neighbor and is likewise dominated by the service sector with a large portion of the population employed by the government. In 2012 - the latest year for which data are available - the services sector, which includes the public sector, trade, tourism, and education, contributed 58.7% to economic output. In the same year, light manufacturing and agriculture contributed 2.7% and 6.2%, respectively. Manufacturing is limited mainly to food and beverages, furniture and fixtures, construction materials, metal and non-metal products, textiles and clothing. The “TRNC” maintains few economic ties with the Republic of Cyprus outside of trade in construction materials. Since its creation, the "TRNC" has heavily relied on financial assistance from Turkey, which supports the "TRNC" defense, telecommunications, water and postal services. The Turkish Lira is the preferred currency, though foreign currencies are widely accepted in business transactions. The "TRNC" remains vulnerable to the Turkish market and monetary policy because of its use of the Turkish Lira. The "TRNC" weathered the European financial crisis relatively unscathed - compared to the Republic of Cyprus - because of the lack of financial sector development, the health of the Turkish economy, and its separation from the rest of the island. The "TRNC" economy experienced growth estimated at 2.8% in 2013 and 2.3% in 2014 and is projected to grow 3.8% in 2015.
GDP (purchasing power parity): $1.829 billion (2007 est.)
GDP - real growth rate: 2.3% (2014 est.) 2.8% (2013 est.)
GDP - per capita: $11,700 (2007 est.)
GDP - composition by sector: agriculture: 6.2%, industry: 35.1%, services: 58.7% (2012 est.)
Labor force: 95,030 (2007 est.)
Labor force - by occupation: agriculture: 14.5%, industry: 29%, services: 56.5% (2004)
Unemployment rate: 9.4% (2005 est.)
Population below poverty line: %NA
Inflation rate: 11.4% (2006)
Budget: revenues: $2.5 billion, expenditures: $2.5 billion (2006)
Agriculture - products: citrus fruit, dairy, potatoes, grapes, olives, poultry, lamb
Industries: foodstuffs, textiles, clothing, ship repair, clay, gypsum, copper, furniture
Industrial production growth rate: -0.3% (2007 est.)
Electricity production: 998.9 million kWh (2005)
Electricity consumption: 797.9 million kWh (2005)
Exports: $68.1 million, f.o.b. (2007 est.)
Export - commodities: citrus, dairy, potatoes, textiles
Export - partners: Turkey 40%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited
Imports: $1.2 billion, f.o.b. (2007 est.)
Import - commodities: vehicles, fuel, cigarettes, food, minerals, chemicals, machinery
Import - partners: Turkey 60%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited
Reserves of foreign exchange and gold: $NA
Debt - external: $NA
Currency (code): Turkish new lira (YTL)
Exchange rates: Turkish new lira per US dollar: 1.9 (2013) 1.8 (2012) 1.67 (2011) 1.5 (2010) 1.55 (2009)
[see also: GDP country ranks ]
[see also: GDP country ranks ]


NOTE: The information regarding Cyprus on this page is re-published from the 2017 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cyprus Economy 2017 information contained here. All suggestions for corrections of any errors about Cyprus Economy 2017 should be addressed to the CIA.




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