Cyprus

In 1974, the Greeks tried to take over the island of Cyprus but Turkey responded with a military intervention and gained control of about a third of Cyprus. In 1983, this area became the "Turkish Republic of Northern Cyprus" (TRNC); only Turkey recognizes TRNC. The UN mediated discussions for two years so the two sides could decide on a reunification plan; the talks ended with the April 2004 referendum, where the Greek Cypriots turned down the UN settlement plan. While Cyprus entered the European Union in 2004, the rights and obligations of the EU are not applicable to the TRNC. However, it must be noted that Turkish Cypriots can enjoy EU benefits if they are eligible for Republic of Cyprus citizenship.

Main Airports

Larnaca (LCA), Pafos (PFO)

U.S. Embassy

Corner of Metochiou and Ploutarchou Streets in Engomi, Nicosia
Tel. [357] 22 39 39 39

Statistics

GDP: purchasing power parity:

$16.78 billion; north Cyprus: $4.54 billion (2005 est.)

GDP - real growth rate:

3.8% ; north Cyprus: 10.6% (2005 est.)

GDP - per capita: purchasing power parity:

21,500 (2005 est.)

Inflation rate (consumer prices):

2.6% (2005 est.); north Cyprus: 9.1% (2004 est.)

Labor force:

Republic of Cyprus: 370,000, north Cyprus: 95,025 (2005 est.)

Exports:

$1.237 billion f.o.b.; north Cyprus: $69 million f.o.b. (2005 est.)

Exports - partners:

France 17.7%, UK 17%, Greece 12.2%, Germany 5.7% (2005)

Imports:

$5.552

Imports - partners:

Greece 17.3%, Italy 10.3%, UK 9%, Germany 8.4%, Israel 7.1% (2005)

Population:

784,301 (July 2006 est.)

Population growth rate:

0.53% (2006 est.)

Population Below Poverty Line:

NA%

Major Industries:

tourism, food and beverage processing, cement and gypsum production, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone, and clay products

Employing Workers: *

Registering Property: *

Enforcing Contracts: *

Closing a Business: *

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator

Cyprus

Region

Cyprus Risk Assessment

Country Rating

Rating: A2

The political and economic situation is good. A basically stable and efficient business environment nonetheless leaves room for improvement. Corporate default probability is low on average.

Risk Assessment

Economic growth remained relatively strong in 2007 due notably to the expansion of credit, which spurred retail sales, car purchases, and construction activity, and thereby offset the poor performance in tourism. Growth could slow slightly in 2008 amid a decline in car purchases, slower expansion of credit, and a new slowdown of demand from the euro zone and from the United Kingdom, its number one customer.

With inflation under control, a public deficit in decline, and a stable exchange rate, Cyprus has received approval to adopt the euro in January 2008.

The fiscal consolidation process will nonetheless have to continue to reduce public sector debt that still exceeds the 60 per cent-of-GDP threshold. The rise of energy costs, the strength of domestic demand, and losses of competitiveness have, moreover, contributed to the widening of the current account deficit. Foreign debt has reached high levels in this context, notably with a sharp increase in the debt of banks. Adoption of the single currency will, however, allow Cyprus to reduce the exchange rate risk associated with that debt.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation