Economy of Cyprus

The economy of Cyprus is classified by the World Bank as a high-income economy,[19] and was included by the International Monetary Fund in its list of advanced economies in 2001.[20] Erratic growth rates in the 1990s reflected the economy's vulnerability to swings in tourist arrivals, caused by political instability on the island and fluctuations in economic conditions in Western Europe.

On 1 January 2008, the country adopted the euro as its official currency, replacing the Cypriot pound at an irrevocable fixed exchange rate of CYP 0.585274 per EUR 1.00.

The 2012–13 Cypriot financial crisis, part of the wider European debt crisis, has dominated the country's economic affairs in recent times. 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 on uninsured deposits[21] Insured deposits of €100,000 or less would not be affected.[22][23][24] After a three-and-a-half-year recession, Cyprus returned to growth in the first quarter of 2015.[25] 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.[26][27] 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.[26][27]

הגבול הימי של ישראל
Exclusive economic zone between Israel and Cyprus as signed in Nicosia.
Cranes Limassol Harbour 20110703
The port of Limassol, the busiest in Cyprus.
Cyprusgrapefarm
A vineyard in the Troodos Mountains. The agricultural sector continues to employ a significant proportion of the labor force.
Economy of Cyprus
Nicosia panoramic view Cyprus Tower 25 Jean Nouvel
Nicosia is the island's financial hub
Currency1 euro (ευρώ) = 100 cents (σεντ)
Calendar year
Trade organisations
European Union, WTO
Statistics
GDPIncrease$24.492 billion (nominal, 2018)[1]
Increase$34.546 billion (PPP, 2018)[1]
GDP rank110 (nominal, 2017)[2]
127 (PPP, 2017)[3]
GDP growth
Increase3.4% (Q1 2019 est., year-on-year)[4]
GDP per capita
Increase$25,955 (nominal, 2017)[1]
Increase$38,048 (PPP, 2017)[1]
GDP by sector
services 86.8%, industry 11%, agriculture 2.3% (2017 est.)
0.2% (May 2019)[5]
Population below poverty line
Positive decrease25.2% at risk of poverty or social exclusion (2017)[6][7]
Positive decrease30.8 (2017)[8]
Increase 0.869 very high (2017) (32nd)
Labour force
426,600 (2017 est.)
Labour force by occupation
services 81%, industry 15.2%, agriculture 3.8% (2014 est.)
UnemploymentPositive decrease6.9% (April 2019)[9]
Average gross salary
Increase€1,827 per month (Q2 2018)[10]
Increase€17,218 (2017; annual, equivalised)[11]
Median net salary
Increase€14,497 (2017; annual, equivalised)[11]
Main industries
tourism, food and beverage processing, cement and gypsum, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone and clay products
Decrease57 (2019)[12]
External
ExportsIncrease$2.905 billion (2017 est.)
Export goods
citrus, potatoes, pharmaceuticals, cement, clothing
Main export partners
 Libya 9.4%
 Greece 7.7%
 Norway 6.7%
 United Kingdom 5.3%
 Germany 4.1% (2017)
ImportsIncrease$7.884 billion (2017 est.)
Import goods
consumer goods, petroleum and lubricants, machinery, transport equipment
Main import partners
 Greece 19%
 Italy 7.5%
 China 7.4%
 South Korea 7.3%
 Germany 7%
 Netherlands 5.1%
 United Kingdom 5%
 Israel 4.1% (2017)
FDI stock
Increase$357.8 billion (31 December 2017 est.)
Decrease−$1.003 billion (2017 est.)
Public finances
€21.258 billion (Negative increase102.5% of GDP; 2018 est.)[13]
−€990 million (Decrease−4.8% of GDP; 2018 est.)[13]
RevenuesIncrease39.9% of GDP (2018 est.)[13]
ExpensesNegative increase44.7% of GDP (2018 est.)[13]
Foreign reserves
Increase$879.1 million (31 December 2017 est.)
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

Economy in the government-controlled area

Tree map export 2009 Cyprus.jpeg
A graph of Cypriot exports.

Cyprus has an open, free-market, service-based economy with some light manufacturing. Internationally, Cyprus promotes its geographical location as a "bridge" between 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 region, with nominal GDP per capita exceeding $25,000 in 2017.[1]

Their standard of living is reflected in the country's "very high" Human Development Index,[28] and Cyprus is ranked 23rd in the world in terms of the Quality-of-life Index.[29] However, after more than three decades of unbroken growth, the Cypriot economy contracted in 2009.[30] This reflected the exposure of Cyprus to the Great Recession and European debt crisis. In recent times, concerns have been raised about the state of public finances and spiralling borrowing costs. 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.[31]

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 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, mining and quarrying: 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 buffer zone, were additional setbacks.

The success of Cyprus in the economic sphere has been attributed, inter alia, to the adoption of a market-oriented economic system, the pursuance of sound macroeconomic policies by the government as well as the existence of a dynamic and flexible entrepreneurship and a highly educated labor force. Moreover, the economy benefited from the close cooperation between the public and private sectors.

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 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 13/01/2014. 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. EU accession negotiations started on 31 March 1998, and concluded when Cyprus joined the organization as a full member in 2004.

Investment climate

The Cyprus legal system is founded on English law, and is therefore familiar to most international financiers. Cyprus's legislation was aligned with EU norms in the period leading up to EU accession in 2004. Restrictions on foreign direct investment were removed, permitting 100% foreign ownership in many cases. Foreign portfolio investment in the Cyprus Stock Exchange was also liberalized.[32] In 2002 a modern, business-friendly tax system was put in place with a 12.5% corporate tax rate, one of the lowest in the EU. Cyprus has concluded treaties on double taxation with more than 40 countries, and, as a member of the Eurozone, has no exchange restrictions. Non-residents and foreign investors may freely repatriate proceeds from investments in Cyprus.[32]

Role as a financial hub

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.[33] 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 services sector remains the fastest growing sector of the economy, and had overtaken all other sectors in importance. CIPA has been fundamental towards this trend.[34] As of 2016, CySEC (the Financial Regulator), regulates many of the worlds biggest brands in retail forex as they generally see it as an efficient way to get an EU operating license and industry know-how.[35][36]

Oil and gas

In 2011, Noble Energy estimated that a pipeline to Leviathan gas field could be in operation as soon as 2014 or 2015.[37] Surveys suggest more than 100 trillion cubic feet (2.831 trillion cubic metres) of reserves lie untapped in the eastern Mediterranean basin between Cyprus and Israel - almost equal to the world's total annual consumption of natural gas.[38]

Role as a shipping hub

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.[39] Its geographical position at the crossroads of three continents and its proximity to the Suez Canal has promoted 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 dwt as of 1 January 2013.[40][41]

Tourism

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.[42] 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.[43][44][45] The island beaches have been awarded with 57 Blue Flags. Cyprus became a full member of the World Tourism Organization when it was created in 1975.[46] 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.[47]

Trade

In 2008 fiscal aggregate value of goods and services exported by Cyprus was in the region of $1.53 billion. It primarily exported goods and services such as citrus fruits, cement, potatoes, clothing and pharmaceuticals. At that same period total financial value of goods and services imported by Cyprus was about $8.689 billion. Prominent goods and services imported by Cyprus in 2008 were consumer goods, machinery, petroleum and other lubricants, transport equipment and intermediate goods.

Cypriot trade partners

Traditionally Greece has been a major export and import partner of Cyprus. In fiscal 2007, it amounted for 21.1 percent of total exports of Cyprus. At that same period it was responsible for 17.7 percent of goods and services imported by Cyprus. Some other important names in this regard are UK and Italy.

Eurozone crisis

In 2012, Cyprus became affected by the Eurozone financial and banking crisis. In June 2012, the Cypriot government announced it would need €1.8 billion of foreign aid to support the Cyprus Popular Bank, and this was followed by Fitch down-grading Cyprus's credit rating to junk status.[48] Fitch said Cyprus would need an additional €4 billion to support its banks and the downgrade was mainly due to the exposure of Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank (Cyprus's 3 largest banks) to the Greek financial crisis.[48]

In June 2012 the Cypriot finance minister, Vassos Shiarly, stated that the European Central Bank, European commission and IMF officials are to carry out an in-depth investigation into Cyprus' economy and banking sector to assess the level of funding it requires. The Ministry of Finance rejected the possibility that Cyprus would be forced to undergo the sweeping austerity measures that have caused turbulence in Greece, but admitted that there would be "some negative repercussion".[49]

In November 2012 international lenders negotiating a bailout with the Cypriot government have agreed on a key capital ratio for banks and a system for the sector's supervision. Both commercial banks and cooperatives will be overseen by the Central Bank and the Ministry of Finance. They also set a core Tier 1 ratio - a measure of financial strength - of 9% by the end of 2013 for banks, which could then rise to 10% in 2014.[50]

In 2014, Harris Georgiades pointed that exiting the Memorandum with the European troika required a return to the 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.[51]

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.[52][53]

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).[54] 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.[55]

Economy of Turkish-occupied 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 tourism sector also contributes substantially into the economy. Moreover, the small economy has seen some downfalls because the Turkish lira is legal tender. To compensate for the economy's weakness, Turkey has been known to provide significant financial aid. In both parts of the island, water shortage is a growing problem, and several desalination plants are planned.

The economic disparity between the two communities is pronounced. Although the economy operates on a free-market basis, the lack of private and government investment, shortages of skilled labor and experienced managers, and inflation and the devaluation of the Turkish lira continue to plague the economy.

Trade with Turkey

Turkey is by far the main trading partner of Northern Cyprus, supplying 55% of imports and absorbing 48% of exports. In a landmark case, the European Court of Justice (ECJ) ruled on 5 July 1994 against the British practice of importing produce from Northern Cyprus based on certificates of origin and phytosanitary certificates granted by the de facto authorities. The ECJ decided that only goods bearing certificates of origin from the internationally recognized Republic of Cyprus could be imported by EU member states. The decision resulted in a considerable decrease of Turkish Cypriot exports to the EU: from $36.4 million (or 66.7% of total Turkish Cypriot exports) in 1993 to $24.7 million in 1996 (or 35% of total exports) in 1996. Even so, the EU continues to be the second-largest trading partner of Northern Cyprus, with a 24.7% share of total imports and 35% share of total exports.

The most important exports of Northern Cyprus are citrus and dairy products. These are followed by rakı, scrap and clothing.[56]

Assistance from Turkey is the mainstay of the Turkish Cypriot economy. Under the latest economic protocol (signed 3 January 1997), Turkey has undertaken to provide loans totalling $250 million for the purpose of implementing projects included in the protocol related to public finance, tourism, banking, and privatization. Fluctuation in the Turkish lira, which suffered from hyperinflation every year until its replacement by the Turkish new lira in 2005, exerted downward pressure on the Turkish Cypriot standard of living for many years.

The de facto authorities have instituted a free market in foreign exchange and permit residents to hold foreign-currency denominated bank accounts. This encourages transfers from Turkish Cypriots living abroad.

Happiness

Economic factors such as the GDP and national income strongly correlate with the happiness of a nation's citizens.[57] In a study published in 2005,[58] 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.[59] 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.[60] Women of different skill-sets and "differing economic objectives and constraints" participate in the tourism industry.[61] 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,[62][63] 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.[64] 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.[65] 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

References

  1. ^ a b c d e "Report for Selected Countries and Subjects". World Economic Outlook Database, April 2019. Washington, D.C.: International Monetary Fund. 9 April 2019. Retrieved 10 April 2019.
  2. ^ "Gross domestic product 2017" (PDF). World Bank. 25 April 2019. Retrieved 18 May 2019.
  3. ^ "Gross domestic product 2017, PPP" (PDF). World Bank. 25 April 2019. Retrieved 18 May 2019.
  4. ^ "Latest Figures: GDP Growth Rate, 1st Quarter 2019". Nicosia: Statistical Service of Cyprus. 7 June 2019. Retrieved 14 June 2019.
  5. ^ "CONSUMER PRICE INDEX (CPI): MAY 2019" (PDF). Nicosia: Statistical Service of Cyprus. 6 June 2019. Retrieved 14 June 2019.
  6. ^ "POVERTY AND SOCIAL EXCLUSION: 2017" (PDF). Nicosia: Statistical Service of Cyprus. 17 September 2018. Retrieved 19 September 2018.
  7. ^ "People at risk of poverty or social exclusion by age and sex". Luxembourg: Eurostat. 14 September 2018. Retrieved 19 September 2018.
  8. ^ "Gini coefficient of equivalised disposable income - EU-SILC survey". Luxembourg: Eurostat. 14 September 2018. Retrieved 20 September 2018.
  9. ^ "Euro area unemployment at 7.6%" (PDF). Luxembourg: Eurostat. 4 June 2019. Retrieved 4 June 2019.
  10. ^ "AVERAGE MONTHLY EARNINGS OF EMPLOYEES: 2nd QUARTER 2018" (PDF). Nicosia: Statistical Service of Cyprus. 28 September 2018. Retrieved 28 September 2018.
  11. ^ a b "Mean and median income by age and sex - EU-SILC survey". Luxembourg: Eurostat. 14 September 2018. Retrieved 28 September 2018.
  12. ^ "Ease of Doing Business in Cyprus". Washington, D.C.: The World Bank Group. Retrieved 31 October 2018.
  13. ^ a b c d "Provision of deficit and debt data for 2018 - first notification". Luxembourg: Eurostat. 23 April 2019. Retrieved 26 April 2019.
  14. ^ "DBRS Upgrades Republic of Cyprus to BBB (low), Trend Changed to Stable". London: DBRS. 23 November 2018. Retrieved 17 February 2019.
  15. ^ "Fitch Upgrades Cyprus to 'BBB-'; Outlook Stable". London: Fitch Ratings. 19 October 2018. Retrieved 17 February 2019.
  16. ^ "Moody's upgrades Cyprus's ratings to Ba2, changes outlook to stable from positive". London: Moody's Investors Service. 27 July 2018. Retrieved 16 September 2018.
  17. ^ "Ratings On Cyprus Raised To 'BBB-/A-3' On Growth Prospects And Banking Sector Consolidation; Outlook Stable". London: S&P Global. 14 September 2018. Retrieved 20 September 2018.
  18. ^ "Rating: Cyprus Credit Rating". CountryEconomy.com. 14 September 2018. Retrieved 16 September 2018.
  19. ^ "Country and Lending Groups". World Bank. Retrieved 2 August 2011.
  20. ^ "World Economic Outlook Database May 2001". International Monetary Fund. Retrieved 2 August 2011.
  21. ^ Higgins, Andrew (31 March 2013). "As Banks in Cyprus Falter, Other Tax Havens Step In". The New York Times. Retrieved 24 October 2013.
  22. ^ "Eurogroup Statement on Cyprus". Eurogroup. 25 March 2013. Archived from the original on 11 October 2017. Retrieved 30 March 2013.
  23. ^ Jan Strupczewski; Annika Breidthardt (25 March 2013). "Last-minute Cyprus deal to close bank, force losses". Reuters. Retrieved 25 March 2013.
  24. ^ "Eurogroup signs off on bailout agreement reached by Cyprus and troika". Ekathimerini. Greece. 25 March 2013. Retrieved 25 March 2013.
  25. ^ "Cyprus growth welcome but fragile – finmin". Cyprus Weekly. 13 May 2015. Archived from the original on 18 May 2015. Retrieved 13 May 2015.
  26. ^ a b "Cyprus successfully exits ESM programme". Luxembourg: European Stability Mechanism. 31 March 2016. Retrieved 31 March 2016.
  27. ^ a b "Επισήμως εκτός μνημονίου η Κύπρος". Kathimerini (in Greek). Athens. 31 March 2016. Retrieved 31 March 2016.
  28. ^ "Human Development Index (HDI) - 2011 Rankings". United Nations Development Programme. Retrieved 4 November 2011.
  29. ^ "The Economist Intelligence Unit's quality-of-life index" (PDF). Economist Intelligence Unit. 2005. Retrieved 2 August 2011.
  30. ^ "Report for Selected Countries and Subjects". World Economic Outlook Database, April 2014. Washington, D.C.: International Monetary Fund. 8 April 2014. Retrieved 16 April 2014.
  31. ^ Kambas, Michele (30 July 2011). "Cyprus too slow in making cuts". Cyprus Mail. Nicosia. Archived from the original on 1 September 2011. Retrieved 30 July 2011.
  32. ^ a b Cyprus will continue to fight against money laundering FT.com 20 August 2007
  33. ^ "The midget and the mighty". Economist. 6 August 2012.
  34. ^ Investments worth Billions in the Pipeline Archived 21 November 2012 at the Wayback Machine Cyprus-Mail - 13 September 2012
  35. ^ FX Empire: CySEC Regulated Brokers
  36. ^ The Current State of the Reform Process in Cyprus
  37. ^ Oil and gas for Cyprus and Israel Economist.com 15 November 2011
  38. ^ Cyprus hopes gas export income will flow by 2019 Reuters.com 6 July 2012
  39. ^ Limassol Based Shipping Companies CyprusShipping.com
  40. ^ "Review of Maritime Transport 2013" (PDF). Geneva: United Nations Conference on Trade and Development. Retrieved 16 November 2014.
  41. ^ Lloyds Ship Management Directory
  42. ^ "Economy Statistics - Tourist arrivals (per capita) (most recent) by country". Nationmaster. Retrieved 17 January 2018.
  43. ^ KPMG: Cyprus Tourism Market Report
  44. ^ Tourism in Cyprus: Recent Trends and Lessons from the Tourist Satisfaction Survey
  45. ^ World Travel Guide
  46. ^ "UNWTO member states". World Tourism Organization (UNWTO). Archived from the original on 20 June 2006. Retrieved 2 March 2007.
  47. ^ "Travel and Tourism Competitiveness Index". World Economic Forum. 2011. Retrieved 1 June 2011.
  48. ^ a b "Cyprus's credit rating cut to junk status by Fitch". BBC News Online. 25 June 2012. Retrieved 25 June 2012.
  49. ^ "Cyprus says EU, IMF officials to start assessing next week how much bailout money needed - from Associated Press". WashingtonPost.com. 28 June 2012. Retrieved 28 June 2012.
  50. ^ Cyprus, troika agree on bank supervision, capital ratio Reuters 17/11/12
  51. ^ Financial Mirror: Bank restrictions to be lifted by Spring 2014, says Cyprus Finance Minister
  52. ^ Business Insider: EU's Juncker praises Cyprus recovery after bailout
  53. ^ Cyprus Mail: Eurogroup full of praise for Cyprus but some obligations remain
  54. ^ Gold Magazine: Moody`s Changes Outlook on Cypriot Banking System to Positive from Stable
  55. ^ BoC’s Ackermann urges EU to pledge financial support for solution
  56. ^ TRNC Ministry of Economy and Energy, Department of Trade. Dış Ticaret İthalat ve İhracat İstatistikleri 2010, p. VI.
  57. ^ Tella, Rafael Di; MacCulloch, Robert J.; Oswald, Andrew J. (November 2003). "The Macroeconomics of Happiness". Review of Economics and Statistics. 85 (4): 809–827. CiteSeerX 10.1.1.11.3175. doi:10.1162/003465303772815745. ISSN 0034-6535.
  58. ^ Blanchflower, David G.; Oswald, Andrew J. (September 2005). "Happiness and the Human Development Index: The Paradox of Australia" (PDF). The Australian Economic Review. 38 (3): 307–318. doi:10.1111/j.1467-8462.2005.00377.x. ISSN 0004-9018.
  59. ^ Report, World Happiness (14 March 2018). "World Happiness Report 2018". World Happiness Report. Retrieved 4 May 2018.
  60. ^ Gokdemir, Ozge; Tahsin, Emine (2014). "Factors that Influence the Life Satisfaction of Women Living in the Northern Cyprus". Social Indicators Research. 115 (3): 1071–1085. doi:10.1007/s11205-013-0265-3. JSTOR 24720448.
  61. ^ Gender, work, and tourism. Sinclair, M. Thea. London: Routledge. 1997. ISBN 978-0415109857. OCLC 36350641.CS1 maint: others (link)
  62. ^ Trifiletti, Rossana (1999). "Southern European Welfare Regimes and the Worsening Position of Women". Journal of European Social Policy. 9: 49–64. doi:10.1177/095892879900900103.
  63. ^ Gal, John (2010). "Is there an extended family of Mediterranean welfare states?". Journal of European Social Policy. 20 (4): 283–300. doi:10.1177/0958928710374374.
  64. ^ Aassve, Arnstein; Goisis, Alice; Sironi, Maria (1 August 2012). "Happiness and Childbearing Across Europe". Social Indicators Research. 108 (1): 65–86. doi:10.1007/s11205-011-9866-x. ISSN 0303-8300.
  65. ^ Piper, Alan T. (1 August 2015). "Europe's Capital Cities and the Happiness Penalty: An Investigation Using the European Social Survey" (PDF). Social Indicators Research. 123 (1): 103–126. doi:10.1007/s11205-014-0725-4. ISSN 0303-8300.

External links

2012–13 Cypriot financial crisis

The 2012–2013 Cypriot financial crisis was an economic crisis in the Republic of Cyprus that involved the exposure of Cypriot banks to overleveraged local property companies, the Greek government-debt crisis, the downgrading of the Cypriot government's bond credit rating to junk status by international credit rating agencies, the consequential inability to refund its state expenses from the international markets and the reluctance of the government to restructure the troubled Cypriot financial sector.On 25 March 2013, a €10 billion international bailout by the Eurogroup, European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) was announced, in return for Cyprus agreeing to close the country's second-largest bank, the Cyprus Popular Bank (also known as Laiki Bank), imposing a one-time bank deposit levy on all uninsured deposits there, and possibly around 48% of uninsured deposits in the Bank of Cyprus (the island's largest commercial bank). A minority proportion of it held by citizens of other countries (many of whom from Russia), who preferred Cypriot banks because of their higher interest on bank account deposits, relatively low corporate tax, and easier access to the rest of the European banking sector. This resulted in numerous insinuations by US and European media, which presented Cyprus as a 'tax haven' and suggested that the prospective bailout loans were meant for saving the accounts of Russian depositors. No insured deposit of €100,000 or less would be affected.Nearly one third of Rossiya Bank's cash ($1 billion) was frozen in Cypriot accounts during this crisis.

Agriculture in Cyprus

When Cyprus achieved independence in 1960, the backbone of its economy was agriculture, mostly small farms, and sometimes even subsistence farms. During the 1960s, irrigation projects made possible vegetable and fruit exports; increasingly commercialized farming was able to meet the demands for meat, dairy products, and wine from the British and United Nations troops stationed on the island and from the growing number of tourists.

In the early 1970s, Cypriot farms, still overwhelmingly small owner-run units, furnished about 70 percent of commodity exports and employed about 95,000 people, or one-third of the island's economically active population. Given the expansion of the manufacturing and service sectors, however, agriculture's importance was declining, and in the first half of the 1970s its share of GDP amounted to 18 percent.

The de facto division of the island in 1974 left the Turkish Cypriot community in the north in possession of agricultural resources that produced about four-fifths of the citrus and cereal crops, two-thirds of the green fodder, and all of the tobacco. The south retained nearly all of the island's grapegrowing areas and deciduous fruit orchards. The south also possessed lands producing roughly three-fourths of the valuable potato crop and other vegetables (excluding carrots), half the island's olive trees, and two-thirds of its carob trees. In addition, the south retained two-thirds of the livestock population.The Turkish occupation caused a large-scale uncoordinated exchange of the agricultural work force between the northern and southern zones. The resulting substantial agricultural unemployment was countered by government actions that included financial assistance on easy terms to farmers. By 1978 the number of persons working in agriculture in the government-controlled area amounted to about 47,000, or 23 percent of the working population. Thereafter, however, agriculture's portion of the work force declined to 20.7 percent in 1979 and 15.8 percent in 1987. Its contribution to the economy also declined; from 17.3 percent of GDP in 1976 to 10.7 percent in 1979 and 7.7 percent in 1988. This share was important to the south's economy, however, and in 1988 value added in agriculture, at constant 1985 prices, was C£112.7 million.Agriculture's share of the national economy declined further in the 1990s, as the Greek Cypriot economy became even more dominated by the service sector. The island's favorable climate and its location near its leading market, Western Europe, however, meant that farming remains an important and stable part of the overall economy. Government irrigation projects, subsidies, and tax policies encouraged farming's existence, as did research in new crops and new varieties of ones already in cultivation.The Ministry of Agriculture and Natural Resources oversaw efforts to improve agriculture, fishing, and forestry. Subordinate to this ministry and assisting it were, among others, the Agricultural Research Institute, the Veterinary Service, the Meteorological Service, the Department of Water Development, the Department of Forests, and the Department of Geological Survey.In addition to macroeconomic considerations, the government encouraged agriculture because it provided rural employment, which maintained village life and relieved urban crowding. Small-scale agricultural activity prevented some regions from losing much of their population. Part-time agricultural work also permitted urban residents to keep in contact with their villages and gave them supplemental income.

Albert J. Meyer (economist)

Albert Julius Meyer (14 May 1919 – 31 October 1983) was an American economist who taught at Harvard University for 28 years. Meyers specialized in the economies of the Middle East.

Meyer was born in Hawarden, Iowa. obtained his bachelors and master's degrees at the University of California at Los Angeles. In 1947 he received his doctorate from Johns Hopkins University. Among his seminal papers was "Entrepreneurship the missing link in the Arab states?" In 1955, he started teaching at Harvard. While at Harvard he produced two major books:

Middle Eastern Capitalism: Nine essays (1959) and

The Economy of Cyprus (1962)Myers was chief of mission for the Special U.S. Economic Mission to Saudi Arabia, June 13–30, 1962, that led to closer U.S. ties with the kingdom.

Meyers was married to Anne Avantaggio and they had three children. He died of leukemia in Boston and his papers are maintained at the Harvard University Archives.

Cypriot pound

The Cypriot pound, also known as the lira (Greek: λίρα / plural λίρες and Turkish: lira, from the Latin libra through the Italian lira), was the currency of Cyprus, including the Sovereign Base Areas in Akrotiri and Dhekelia, from 1879 to 2007, when the Republic of Cyprus adopted the euro. However, the self-proclaimed Turkish Republic of Northern Cyprus used and still uses on the official level the Turkish lira.

The Cypriot pound was introduced in 1879 and was equal in value to the pound sterling. It had remained at that value until 1972, some twelve years after Cyprus gained independence from the United Kingdom. The Cypriot pound was replaced by the euro as official currency of the Republic of Cyprus on 1 January 2008 at the irrevocable fixed exchange rate of CYP 0.585274 = € 1.00.

Cyprus Investment Promotion Agency

The Cyprus Investment Promotion Agency (CIPA) is the national investment promotion agency of Cyprus with the mandate to enhance the nation's investment appeal abroad.

Cyprus Securities and Exchange Commission

The Cyprus Securities and Exchange Commission, (Greek: Επιτροπή Κεφαλαιαγοράς) better known as CySEC, is the financial regulatory agency of Cyprus. As an EU member state, CySEC's financial regulations and operations comply with the European MiFID financial harmonization law. Notably a significant number of overseas retail forex brokers and binary options brokers have obtained registration from CySEC.

Cyprus State Fairs Authority

The Cyprus State Fairs Authority (CSFA) was established in 1968 as a semi-government organisation in order to run and promote the annual Cyprus International Fair. It has since expanded and runs several annual and biannual events such as the education fair, and the Cyprus motor show.

The largest event the Cyprus International Fair was first held in 1975. Since then it has steadily grown and in currently has around 130,000 visitors. In 2007 the CSFA announced a decision to rename the event to Expo-Cyprus.The grounds of the state fair moved to their current location in the Nicosia suburb of Makedonitissa in the early 1970s and have undergone several phases of expansion since. Currently they cover an area of 30,000m2 of indoor space and 100,000m2 of outdoor grounds. Apart from hosting exhibitions the grounds have at times been used for other purposes such as music concerts, large rave parties even as a service station for the Cyprus arm of the Middle East Rally. In 2006 the American Embassy to Cyprus was allowed to use two large exhibition halls as temporary accommodation to house the thousands of American citizens evacuated from the war in Lebanon.The CSFA is a member of the Global Association of the Exhibition Industry and the International Congress and Convention Association.

FBME Bank

FBME Bank was an international commercial bank. It offered commercial banking services and products to corporate and individual clients. Its traditional banking lines included international payment services, multi-currency account, credit facilities, trade finance, forex trading facilities, internet banking and international card services. FBME serviced clients worldwide.

As of September 2013, FBME was the largest commercial bank in Tanzania, with a total asset base valued at approximately US$2.716 billion (TZS:4.4 trillion), with shareholders' equity of approximately US$179.63 million (TZS:291 billion).

Index of Cyprus-related articles

This page list topics related to Cyprus.

Ledra Street

Ledra Street (Greek: Οδός Λήδρας Odos Lidras) is a major shopping thoroughfare in central Nicosia, Cyprus, which links North Nicosia, the part of the city under the control of the de facto Northern Cyprus, and south Nicosia.It is the site of the former Ledra Street barricade, across the United Nations buffer zone. The barricade symbolised the division of Nicosia between the Greek south and Turkish north. It was removed in April 2008 and Ledra Street became the sixth crossing between the southern and northern parts of Cyprus. Ledra Street runs parallel to Onasagorou Street.

The name of the street refers to the ancient city-kingdom of Ledra, established in 1050 BC, that was located in the centre of the island where the capital city is today.

List of Cypriots by net worth

This is a list of Cypriot billionaires by net worth. According to the Forbes magazine(March 2016), and other various sources.

METRO Foods Trading

METRO is one of the leading supermarket chains in Cyprus. It currently operates with 3 stores in Nicosia and 1 store in Larnaca, one in Limassol and one in Paralimni.

In October 1982, METRO Foods Trading Ltd was established with its first hypermarket in Larnaca.

Makarios Avenue

Makarios Avenue (Greek: Λεωφόρος Αρχιεπισκόπου Μακαρείου 'Γ) is an avenue in the centre of Nicosia, Cyprus which covers a distance of 2 kilometres (1.2 mi). The Street starts from the Junction of Evagoras Avenue until Aglandjia Avenue and is named after the first President of Cyprus Archbishop Makarios III. In Colonial times Makarios Avenue was named Pluto Street. and was the main route to Limassol, it was lined with residential buildings such as the Lyssiotis Mansion built in 1928 and is now the Head Office of the National Bank of Greece in Cyprus. The area has been transformed into a commercial district with many of the original buildings demolished to make way for shops and office blocks. Makariou Avenue is parallel to Stasikratous Street and Themistokli Dervi Avenue .

Michael Zampelas

Michael Herodotou Zampelas (19 March 1937 – 15 May 2019) was a Cypriot businessman, politician and philanthropist.

Mining industry of Cyprus

The Mining industry of Cyprus is synonymous with copper extraction which began around 4,000 BC. Copper dominates the mining sector along with mining of iron pyrite, gold, chromites and asbestos fibers, bentonite, cement, and also petroleum. Though at one time, copper was a mainstay of the economy, as of 2012, the mining sector does not contribute in a significant way to the GNP.

Outline of Cyprus

The following outline is provided as an overview of and topical guide to Cyprus:

Cyprus – Eurasian island country located in the Eastern Mediterranean Sea, east of Greece, south of Turkey, west of Syria and Lebanon, northwest of Israel and north of Egypt. Cyprus is the third largest island in the Mediterranean Sea and the Republic of Cyprus is a member state of the European Union.

Revenue stamps of Cyprus

The island of Cyprus first issued revenue stamps in 1878 and continues to do so to this day. The Turkish Republic of Northern Cyprus also issues its own revenue stamps.

Toumazou v. Republic of Turkey

Toumazou et al. v. Republic of Turkey et al., was a class action suit by Greek Cypriots and others against the TRNC Representative Offices in the United States and HSBC Bank USA. Turkey was dropped as defendant on 16 February 2010 and the lawsuit name was subsequently revised to Toumazou et al. v. Turkish Republic of Northern Cyprus. The TRNC Representative Offices are a commercial entity because the United States does not formally recognise the Turkish Republic of Northern Cyprus. The staff of the Representative Offices do not have diplomatic visas and only operate within the United States using business visas. Tsimpedes Law in Washington DC sued for "the denial of access to and enjoyment of land and property held in the north". The lawsuit, originally initiated by Cypriots displaced during the Turkish invasion of Cyprus in 1974, was joined by non-Cypriots who paid for but have never been given legal title to properties that they have purchased.

Tourism in Cyprus

Tourism in Cyprus occupies a dominant position in the economy. Moreover, it significantly impacts Cyprus culture and its multinational/multicultural development throughout the decades. In 2006, the tourism industry contributed 10.7% of the GDP which in real terms it generated a total of US$5,445.0 mn. In the same year, the total employment was estimated at 113,000 jobs. With almost 4

million tourist arrivals per year, it is the 40th most popular destination in the world. However, per capita of local population it ranks 6th. Cyprus has been a full member of the World Tourism Organization since 1975.

History
Geography
Politics
Economy
Society
Sovereign states
States with
limited recognition
Dependencies and
other territories
Sovereign states
States with limited
recognition
Dependencies and
other entities
Other entities

This page is based on a Wikipedia article written by authors (here).
Text is available under the CC BY-SA 3.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.