| Economy - overview: Economic affairs are affected by the
division of the country. The Greek Cypriot economy is prosperous but
highly susceptible to external shocks. Erratic growth rates in the 1990s
reflect the economy's vulnerability to swings in tourist arrivals, caused
by political instability on the island and fluctuations in economic
conditions in Western Europe. Economic policy is focused on meeting the
criteria for admission to the EU. As in the Turkish sector, water shortage
is a growing problem, and several desalination plants are planned. The
Turkish Cypriot economy has about one-fifth the population and one-third
the per capita GDP of the south. Because it is recognized only by Turkey,
it has had much difficulty arranging foreign financing, and foreign firms
have hesitated to invest there. It remains heavily dependent on
agriculture and government service, which together employ about half of
the work force. Moreover, the small, vulnerable economy has suffered
because the Turkish lira is legal tender. To compensate for the economy's
weakness, Turkey provides direct and indirect aid to tourism, education,
industry, etc. GDP:
Greek Cypriot area: purchasing power parity - $9.7 billion (2000 est.);
Turkish Cypriot area: purchasing power parity - $830 million (1999 est.)
GDP - real growth rate: Greek Cypriot area: 4.2% (2000 est.);
Turkish Cypriot area: 4.9% (1999 est.)
GDP - per capita: Greek Cypriot area: purchasing power parity -
$16,000 (2000 est.); Turkish Cypriot area: purchasing power parity -
$5,300 (1999 est.)
GDP - composition by sector: Greek Cypriot area: agriculture 6.3%, industry
22.4%, services 71.3%; Turkish Cypriot area: agriculture 11.8%, industry 20.5%, services
67.7% (1998)
Inflation rate (consumer prices): Greek Cypriot area: 4.2% (2000
est.); Turkish Cypriot area: 58% (1999 est.)
Labor force: Greek Cypriot area: 291,000; Turkish Cypriot area:
86,300 (2000)
Labor force - by occupation: Greek Cypriot area: services 73%,
industry 22%, agriculture 5% (2000); Turkish Cypriot area: services 56.4%,
industry 22.8%, agriculture 20.8% (1998)
Unemployment rate: Greek Cypriot area: 3.6% (2000 est.); Turkish
Cypriot area: 6% (1998 est.)
Budget:
revenues: Greek Cypriot area - $2.9 billion (2000 est.); Turkish
Cypriot area - $294 million (2000 est.)
expenditures: Greek Cypriot area - $3.2 billion, including capital
expenditures of $324 million (2000 est.); Turkish Cypriot $495 million,
including capital expenditures of $60 million (2000 est.)
Industries: food, beverages, textiles, chemicals, metal products, tourism, wood
products
Industrial production growth rate: Greek Cypriot area: 2.2%
(1999); Turkish Cypriot area: -0.3% (1999)
Electricity - production: 2.951 billion kWh (1999)
Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1999)
Agriculture - products: potatoes, citrus, vegetables, barley, grapes, olives,
vegetables
Exports: Greek Cypriot area: $1 billion (f.o.b., 1999 est.);
Turkish Cypriot area: $51.1 million (f.o.b., 1999)
Exports - commodities: Greek Cypriot area: citrus, potatoes,
grapes, wine, cement, clothing and shoes; Turkish Cypriot area: citrus,
potatoes, textiles
Exports - partners: Greek Cypriot area: UK 17.3%, Greece 9.7%,
Russia 7.0%, Lebanon 5.2% (1999); Turkish Cypriot area: Turkey 51%, UK
31%, other EU 16.5% (1999)
Imports: Greek Cypriot area: $3.6 billion (f.o.b., 1999 est.);
Turkish Cypriot area: $402 million (f.o.b., 1999)
Imports - commodities: Greek Cypriot area: consumer goods,
petroleum and lubricants, food and feed grains, machinery; Turkish Cypriot
area: food, minerals, chemicals, machinery
Imports - partners: Greek Cypriot area: UK 11.2%, US 10.6%, Italy
8.8%, Greece 8.2%, Germany 6.7% (1999); Turkish Cypriot area: Turkey
58.6%, UK 12.5%, other EU 13% (1999)
Debt - external: Greek Cypriot area: $1.27 billion (1998)
Economic aid - recipient: Greek Cypriot area - $17 million (1998);
Turkish Cypriot area - $700 million from Turkey in grants and loans
(1990-97) that are usually forgiven
Currency: Greek Cypriot area: Cypriot pound (CYP); Turkish Cypriot
area: Turkish lira (TRL)
SOURCE: The World Factbook |