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Cyprus Economy Profile 2016

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Economy - overviewThe area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for more than four-fifths of GDP. Tourism, financial services, shipping, and real estate have traditionally been the most important sectors. Cyprus has been a member of the EU since May 2004 and adopted the euro as its national currency in January 2008.

During the first five years of EU membership, the Cyprus economy grew at an average rate of about 4%, with unemployment between 2004 and 2008 averaging about 4%. However, the economy tipped into recession in 2009 as the ongoing global financial crisis and resulting low demand hit the tourism and construction sectors. An overextended banking sector with excessive exposure to Greek debt added to the contraction. Cyprus’ biggest two banks were among the largest holders of Greek bonds in Europe and had a substantial presence in Greece through bank branches and subsidiaries. Following numerous downgrades of its credit rating, Cyprus lost access to international capital markets in May 2011. In July 2012, Cyprus became the fifth euro-zone government to request an economic bailout program from the European Commission, European Central Bank and the International Monetary Fund - known collectively as the "Troika."

Shortly after the election of President Nikos ANASTASIADES in February 2013, Cyprus reached an agreement with the Troika on a $13 billion bailout that resulted in losses on uninsured bank deposits. The bailout triggered a two-week bank closure and the imposition of capital controls that remained partially in place until April 2015. Cyprus' two largest banks merged and the combined entity was recapitalized through conversion of some large bank deposits to shares and imposition of losses on bank bondholders. As with other EU countries, the Troika conditioned the bailout on passing financial and structural reforms and privatizing state-owned enterprises. Despite downsizing and restructuring, the Cypriot financial sector throughout 2015 remained burdened by the largest stock of non-performing loans in the euro zone, equal to nearly half of all loans. Since the bailout, Cyprus has received positive appraisals by the Troika and outperformed fiscal targets but has struggled to overcome political opposition to bailout-mandated legislation, particularly regarding privatizations. Cyprus emerged from recession in 2015 and its economy grew an estimated 1.6% for the year, setting a positive tone for the scheduled end of the bailout program in March 2016.

In October 2013, a US-Israeli consortium completed preliminary appraisals of hydrocarbon deposits in Cyprus’ exclusive economic zone (EEZ), which revealed an estimated gross mean reserve of about 130 billion cubic meters. Though exploration continues in Cyprus’ EEZ, no additional commercially exploitable reserves were identified during the exploratory drilling in 2014/2015. Developing offshore hydrocarbon resources remains a critical component of the government’s economic recovery efforts, but development has been delayed as a result of regional developments and disagreements about exploitation methods.
GDP (purchasing power parity)$28.06 billion (2015 est.)
$27.62 billion (2014 est.)
$28.33 billion (2013 est.)
note: data are in 2015 US dollars
GDP (official exchange rate)$19.33 billion (2015 est.)
GDP - real growth rate1.6% (2015 est.)
-2.5% (2014 est.)
-5.9% (2013 est.)
GDP - per capita (PPP)$32,800 (2015 est.)
$32,600 (2014 est.)
$33,000 (2013 est.)
note: data are in 2015 US dollars
Gross national saving10.2% of GDP (2015 est.)
8.6% of GDP (2014 est.)
8.7% of GDP (2013 est.)
GDP - composition, by end usehousehold consumption: 69.4%
government consumption: 14.7%
investment in fixed capital: 10.7%
investment in inventories: 1%
exports of goods and services: 55.9%
imports of goods and services: -51.7% (2015 est.)
GDP - composition by sectoragriculture: 2.1%
industry: 10.3%
services: 87.4% (2014 est.)
Population below poverty lineNA%
Labor force349,700 (2014 est.)
Labor force - by occupationagriculture: 3.8%
industry: 15.2%
services: 81% (2014 est.)
Unemployment rate15.5% (2015 est.)
16.1% (2014 est.)
Unemployment, youth ages 15-24total: 35.9%
male: 37.4%
female: 34.6% (2014 est.)
Household income or consumption by percentage sharelowest 10%: 3.3%
highest 10%: 28.8% (2014)
Distribution of family income - Gini index34.8 (2014 est.)
32.4 (2013 est.)
Budgetrevenues:: $7.743 billion
expenditures:: $7.857 billion (2015 est.)
Taxes and other revenues39.9% of GDP (2015 est.)
Budget surplus (+) or deficit (-)-1% of GDP (2015 est.)
Public debt108.4% of GDP (2015 est.)
108.2% of GDP (2014 est.)
note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data exclude debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment
Inflation rate (consumer prices)-1.5% (2015 est.)
-0.3% (2014 est.)
Central bank discount rate0.05% (31 December 2013)
0.3% (31 December 2010)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
Commercial bank prime lending rate4.7% (31 December 2015 est.)
5.88% (31 December 2014 est.)
Stock of narrow money$3.44 billion (31 December 2015 est.)
$4.382 billion (31 December 2014 est.)
note: see entry for the European Union for money supply for the entire euro area; the European Central Bank (ECB) controls monetary policy for the 18 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Stock of broad money$43.41 billion (31 December 2014 est.)
$47.99 billion (31 December 2013 est.)
Stock of domestic credit$50.49 billion (31 December 2015 est.)
$65.42 billion (31 December 2014 est.)
Market value of publicly traded shares$1.996 billion (31 December 2012 est.)
$2.853 billion (31 December 2011)
$6.834 billion (31 December 2010 est.)
Agriculture - productscitrus, vegetables, barley, grapes, olives, vegetables; poultry, pork, lamb; dairy, cheese
Industriestourism, food and beverage processing, cement and gypsum, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone and clay products
Industrial production growth rate-2.3% (2015 est.)
Current Account Balance-$992 million (2015 est.)
-$1.052 billion (2014 est.)
Exports$1.818 billion (2014 est.)
$2.018 billion (2013 est.)
Exports - commoditiescitrus, potatoes, pharmaceuticals, cement, clothing
Exports - partnersGreece 10.9%, Ireland 10.2%, UK 7.2%, Israel 6% (2015)
Imports$6.755 billion (2014 est.)
$6.32 billion (2013 est.)
Imports - commoditiesconsumer goods, petroleum and lubricants, machinery, transport equipment
Imports - partnersGreece 25.7%, UK 9.1%, Italy 8%, Germany 7.5%, Israel 5.5%, China 4.8%, Netherlands 4.1% (2015)
Reserves of foreign exchange and gold$864 million (31 December 2015 est.)
$890.9 million (31 December 2014 est.)
Debt - external$95.28 billion (31 December 2013 est.)
$103.5 billion (31 December 2012 est.)
Stock of direct foreign investment - at home$60.35 billion (31 December 2015 est.)
$59.1 billion (31 December 2014 est.)
Stock of direct foreign investment - abroad$43.82 billion (31 December 2015 est.)
$42.87 billion (31 December 2014 est.)
Exchange rateseuros (EUR) per US dollar -
0.885 (2015 est.)
0.7525 (2014 est.)
0.7634 (2013 est.)
0.78 (2012 est.)
0.7185 (2011 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on October 8, 2016