Innovative property investments
Investment Property in Cyprus
Buying Guide
Economic Overview
Servicing tourism
The economy of Cyprus is dominated by the service sector, which accounts for 76% of GDP, with tourism and financial services the most important sectors.
Agriculture at 3.7% and industry at 19.8% make up the rest.
Economic growth
Levels of economic growth over the last 10 years have been inconsistent, reflecting the island’s reliance on tourism.
The numbers of tourists visiting Cyprus over this period has fluctuated with political instability in the region and economic conditions in Western Europe.
However, in recent years the economy has grown at a rate well above the EU average, recording an impressive 3.7% growth in both 2004 and 2005.
High living standards
Cyprus is classified among the high-income countries.
It has the third highest standard of living in the Mediterranean, higher than several other European Union members.
It holds 16th place worldwide in terms of per capita income at 16,510 USD (World Bank, 2006) and the GDP per capita is 21,600 USD.
The main economic centres are Nicosia, Limassol, Larnaca and Paphos.
Meeting EU requirements
Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and is aiming to adopt the euro on 1 January 2008.
To this end, the government has embarked on a strict austerity program, which has cut the budget deficit to below 3%.
Key facts
- The service sector contributes 76% of GDP, with tourism and financial services the main contributors
- The economy grew an impressive 3.7% in 2004 and 2005 - well above the average EU rate
- The unemployment rate is around 4%
- It holds 16th place worldwide in terms of per capita income
- It will adopt the euro on 1 January 2008
- Nicosia, Limassol, Larnaca and Paphos are the main economic centres
Downloadable Reports and Documents
|
|||||||||||||||||||||||||||||||||||||||