Economy overview: The position in the economy is determined by the division of the island. The economy of the Greek part of the island is doing well, but is quite sensitive to external influences. Unsustainable growth in the 1990s was due to a decrease in the number of tourists due to political instability on the island and the situation in the Western European economy. The main efforts of the government of the Greek community are aimed at achieving the criteria necessary for accession to the EU. In the Turkish zone, a growing problem is the lack of water, which requires the construction of several desalination plants. The economy of the Turkish community has about a fifth of the population, the level of GDP per capita is one third of that of the south. The fact that the state of the Turkish Cypriots is recognized only by Turkey creates significant obstacles for foreign capital, and foreign firms are hesitant to invest in the economy of the northern part of the island. The economy is heavily dependent on agriculture and the civil service, which provide about half of the jobs. In addition, the small, unstable economy of the north is quite vulnerable due to the fact that the legal currency is the Turkish lira. To compensate for the economic weakness of the northern part of the island, Turkey provides direct and indirect support for tourism, education, industry, etc. See businesscarriers.com to know more about Cyprus Economics and Business. GDP: Greek zone: Purchasing power parity – $9.7 billion; Turkish zone: Purchasing power parity $830 million (1999 est.). Real GDP growth rate: Greek zone: 4.2% (2000 est.); Turkish zone: 4.9% (1999 est.). GDP per capita: Greek zone: Purchasing power parity – $16,000 (2000 est.); Turkish zone: Purchasing power parity $5,300 (1999 est.). The composition of GDP by sectors of the economy: Greek zone: agriculture 6.3%, industry 22.4%, services 71.3%; Turkish zone: agriculture 11.8%, industry 20.5%, services 67.7% (1998). Proportion of the population below the poverty line: no data available. Percentage distribution of household income or consumption: for the poorest 10% of households: n/a; by top 10% of households: no data. Inflation rate at consumer prices: Greek zone: 4.2% (2000 est.); Turkish zone: 58% (1999 est.). Labor force: Greek zone: 291,000; Turkish zone: 86,300 people (2000). Employment structure: Greek zone: services 73%, industry 22%, agriculture 5% (2000); Turkish zone: services 56.4%, industry 22.8%, agriculture 20.8% (1998). Unemployment rate: Greek zone: 3.6% (2000 est.); Turkish zone: 6% (1998 est.). Budget: revenues: Greek zone, $2.9 billion (2000 est.); Turkish zone, $294 million (2000 est.); expenses: Greek zone – $3.2 billion, including capital investments – $324 million; Turkish zone – $495 million, including capital investments – $60 million (2000 est.). Spheres of economy: production of food and drinks, textile industry, chemical industry, metallurgy, tourism, production of wood products. Growth in industrial production: Greek zone: 2.2% (1999); Turkish zone: -0.3% (1999). Electricity generation: Greek zone: 2.951 billion kWh; Turkish zone: no data (1999). Sources of electricity generation: fossil fuels: 100%; hydropower: 0%; nuclear fuel: 0%; others: 0% (1999). Electricity consumption: Greek zone: 2.744 billion kWh; Turkish zone: no data (1999). Electricity export: 0 kWh (1999). Electricity import: 0 kWh (1999). Agricultural products: potatoes, citrus fruits, vegetables, barley, grapes, olives, vegetables. Exports: Greek zone: $1 billion (free on board, 2000 est.); Turkish zone: $51.1 million (free on board, 1999) Exports: Greek zone: citrus fruits, potatoes, grapes, wine, cement, clothing and footwear; Turkish zone: citrus fruits, potatoes, textiles. Export partners: Greek zone: UK 17.3%, Greece 9.7%, Russia 7%, Lebanon 5.2%; Turkish zone: Turkey 51%, UK 31%, other EU countries 16.5% (1999). Imports: Greek zone: $3.6 billion (free on board, 1999 est.); Turkish zone: $402 million (free on board, 1999). Imports: Greek zone: consumer goods, fuels and lubricants, foodstuffs, including wheat, machinery; Turkish zone: food, minerals, chemicals, machinery. Import partners: Greek zone: UK 11.2%, US 10.6%, Italy 8.8%, Greece 8.2%, Germany 6.7%; Turkish zone: Turkey 58.6%, UK 12.5%, other EU countries 13% (1999). External Debt: Greek Zone: NA; Turkish zone: no data. Economic aid recipient: Greek zone – $17 million (1998); Turkish zone – $700 million from Turkey in the form of subsidies and loans, which are not usually required to be repaid (for the period 1990-97). Economic aid donor: Currency: Greek area: Cypriot pound; Turkish zone: Turkish lira. Currency code: CYP; TRL. Exchange rate: CYP/USD – 0.6146 (January 2001), 0.6208 (2000), 0.5423 (1999), 0.5170 (1998), 0.5135 (1997), 0.4663 (1996); TRL7USD -677,621 (December 2000), 625,219 (2000), 418,783 (1999), 260,724 (1998), 151,865 (1997). Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: Greek zone: 405,000 (1998); Turkish zone: 83 162 (1998). Mobile cellular phones: Greek area: 68,000 (1998); Turkish zone: 70,000 (1999). Telephone system: works well in both parts of the island; domestic: overhead lines, fiber optic cable and microwave radio relay; international: communication using tropospheric scatter; 3 coaxial and 5 fiber optic submarine cables; earth satellite stations: 3 Intelsat (1 Atlantic Ocean and 2 Indian Ocean), 2 Eutelsat, 2 Intersputnik, 1 Arabset. Broadcast stations: Greek zone: AM -7, FM -60, shortwave – 1 (1998); Turkish zone: AM -3, FM – 11, shortwave – 1 (1998). Radio receivers: Greek zone: 310,000 (1997); Turkish zone: 56,450 (1994). Television broadcast stations: Greek zone: 4 (and 225 low power repeaters); Turkish zone: 4 (and 5 repeaters) (September 1995). TVs: Greek zone: 248,000 (1997); Turkish zone: 52,300 (1994). Internet Country Code: cy Internet Service Providers: 6 (2000). Number of users: 80,000 (2000).
Transport
Transport Railways: 0 km. Roads: total: Greek area: 10,663 km (1998 est.); Turkish zone: 2,350 km (1996 est.); paved: Greek zone: 6,249 km (1998 est.); Turkish zone: 1,370 km (1996 est.); unpaved: Greek zone: 4,414 km (1998 est.); Turkish zone: 980 km (1996 est.). Ports and harbours: Vasilikos, Kyrenia, Larnaca, Limassol, Paphos, Famagusta. Merchant navy: in total: 1,328 vessels (of 1,000 tons displacement or more) with a total displacement of 22,905,542 gross register tons / 36,312,219 long tons of gross tonnage; different types of ships: barges – 2, bulk carriers – 431, cargo ships – 438, chemical tankers – 23, combined cargoes – 36, combined ore and oil carriers – 4, container ships – 140, liquefied gas carriers – 6, passenger ships – 8, cargo-passenger ships – 1, oil tankers – 143, refrigerated ships 40, ferries – 42, coastal passenger ships – 9, specialized tankers – 2, cargo ships for transportation of vehicles – 3; note: including foreign ships registered here for FOC reasons: Austria 8, Belgium 7, China 10, Cuba 10, Denmark 2, Germany 79, Greece 385, Hong Kong 9, Croatia 2, India 5, Iran 1, Airports: 15 (2000 est.). Airports with paved runways: total: 12; from 2438 to 3047 m: 7; from 1,524 to 2,437 m: 1; from 914 to 1523 m:3; less than 914 m: 1 (2000 est.). Airports with unpaved runways: total: 3; from 914 to 1523 m:1; less than 914 m: 2 (2000 est.). Helipads: 7 (2000 est.).
Armed forces
Branches of the armed forces: Greek zone: Greek National Guard of Cyprus (includes air and naval units), Greek Armed Forces Corps in Cyprus (ELDYK), Greek Police of Cyprus; Turkish zone: Turkish Cyprus security forces, part of the regular Turkish army. Enlistment age: 18 years old. Total Military Manpower: Male 15 to 49: 198,275 (2001 est.). Eligible for military service: males aged 15 to 49: 136,147 (2001 est.). Number of persons reaching military age each year: men: 6,616 (2001 est.). Military spending in dollar terms: $370 million (2000) Military spending as part of GDP: 4.2% (2000).
International Issues
International problems International disputes: since 1974, the territory of the island has been divided into two de facto autonomous zones: the Greek zone, controlled by the government recognized by the world community (59% of the island’s territory), and the Turkish zone (37% of the territory, the government is recognized only by Turkey); there is also a buffer zone (4% of the territory, controlled by the UN) and 2 sovereign areas of British bases, located mostly in the Greek zone of the island. Illicit drugs: minor transit of heroin and hashish to Europe via air and sea routes, mainly from Lebanon and Turkey; small transit of cocaine.
