Cyprus Economy - 2024

Economic overview

services-based, high-income EU island economy; heavy tourism; sustained growth between recovery of national banking system and COVID-19 trade restrictions; high living standards; a known financial hub, its stock exchange functions as an investment bridge between EU-and EEU-member countries

note: 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, until political conditions permit the reunification of the island. Its market-based economy 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. Manufacturing is limited mainly to food and beverages, furniture and fixtures, construction materials, metal and non-metal products, textiles and clothing. Little trade exists with the Republic of Cyprus outside of construction, historically relying heavily upon Turkey for financial aid, defense, telecommunications, utilities, and postal services. The Turkish Lira is the preferred currency, though foreign currencies are widely accepted in business transactions.

Real GDP (purchasing power parity)

$37.546 billion (2021 est.)
$35.209 billion (2020 est.)
$36.819 billion (2019 est.)

note: data are in 2017 dollars

note: area administered by Turkish Cypriots - $1.829 billion (2007 est.)

Real GDP growth rate

6.64% (2021 est.)
-4.37% (2020 est.)
5.53% (2019 est.)

note: area administered by Turkish Cypriots - -16.2% (2020 est.)

Real GDP per capita

$41,700 (2021 est.)
$39,500 (2020 est.)
$41,700 (2019 est.)

note: data are in 2017 dollars

note: area administered by Turkish Cypriots - $11,700 (2007 est.)

GDP (official exchange rate)

$24.946 billion (2019 est.)

Inflation rate (consumer prices)

2.45% (2021 est.)
-0.64% (2020 est.)
0.25% (2019 est.)

Credit ratings

Fitch rating: BBB- (2018)

Moody's rating: Ba2 (2018)

Standard & Poors rating: BBB- (2018)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 2% (2017 est.)

industry: 12.5% (2017 est.)

services: 85.5% (2017 est.)

note: area administered by Turkish Cypriots - agriculture: 6.2%,; industry: 35.1%,; services: 58.7% (2012 est.)

GDP - composition, by end use

household consumption: 68.7% (2017 est.)

government consumption: 14.9% (2017 est.)

investment in fixed capital: 21.1% (2017 est.)

investment in inventories: -0.7% (2017 est.)

exports of goods and services: 63.8% (2017 est.)

imports of goods and services: -67.8% (2017 est.)

Agricultural products

milk, potatoes, pork, sheep milk, goat milk, barley, wheat, poultry, olives, tangerines/mandarins

note: area administered by Turkish Cypriots - 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

note: area administered by Turkish Cypriots - foodstuffs, textiles, clothing, ship repair, clay, gypsum, copper, furniture

Industrial production growth rate

8.1% (2021 est.)

note: area administered by Turkish Cypriots - -0.3% (2007 est.)

Labor force

655,100 (2021 est.)

note: area administered by Turkish Cypriots - 95,030 (2007 est.)

Unemployment rate

6.13% (2021 est.)
7.59% (2020 est.)
7.07% (2019 est.)

note: area administered by Turkish Cypriots - 9.4% (2005 est.)

Youth unemployment rate (ages 15-24)

total: 11.8% (2021 est.)

male: 9.2%

female: 14.9%

Population below poverty line

14.7% (2018 est.)

Gini Index coefficient - distribution of family income

31.2 (2019 est.)

Household income or consumption by percentage share

lowest 10%: 3.3%

highest 10%: 28.8% (2014)

Remittances

2.34% of GDP (2021 est.)
2.13% of GDP (2020 est.)
2.06% of GDP (2019 est.)

Budget

revenues: $10.362 billion (2019 est.)

expenditures: $9.996 billion (2019 est.)

note: area administered by Turkish Cypriots - revenues: $2.5 billion; expenditures: $2.5 billion (est. 2006)

Budget surplus (+) or deficit (-)

1.8% (of GDP) (2017 est.)

Public debt

97.5% of GDP (2017 est.)
106.6% of GDP (2016 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 intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment

Taxes and other revenues

22.42% (of GDP) (2020 est.)

Fiscal year

calendar year

Current account balance

-$1.957 billion (2021 est.)
-$2.523 billion (2020 est.)
-$1.445 billion (2019 est.)

Exports

$24.551 billion (2021 est.)
$20.379 billion (2020 est.)
$19.835 billion (2019 est.)

note: data are in current year dollars and do not include illicit exports or re-exports.

note: area administered by Turkish Cypriots - $68.1 million (est. 2007)

Exports - partners

India 9%, Greece 9%, Libya 8%, United Kingdom 7% (2019)

Exports - commodities

ships, refined petroleum, packaged medicines, cheese, recreational boats (2021)

note: area administered by Turkish Cypriots - citrus, dairy, potatoes, textiles

Imports

$23.748 billion (2021 est.) note: data are in current year dollars
$20.711 billion (2020 est.) note: data are in current year dollars
$19.575 billion (2019 est.) note: data are in current year dollars

note: area administered by Turkish Cypriots - $1.2 billion (est. 2007)

Imports - partners

Greece 16%, Italy 10%, Turkey 8%, Russia 5%, Germany 5%, United Kingdom 5%, China 5% (2019)

Imports - commodities

refined petroleum, ships, cars, coal tar oil, packaged medicines (2019)

note: area administered by Turkish Cypriots - vehicles, fuel, cigarettes, food, minerals, chemicals, machinery

Reserves of foreign exchange and gold

$1.611 billion (31 December 2021 est.)
$1.237 billion (31 December 2020 est.)
$1.033 billion (31 December 2019 est.)

Debt - external

$213.19 billion (2019 est.)
$231.885 billion (2018 est.)

Exchange rates

euros (EUR) per US dollar -

Exchange rates:
0.845 (2021 est.)
0.876 (2020 est.)
0.893 (2019 est.)
0.847 (2018 est.)
0.885 (2017 est.)