Review of Cyprus Economy

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REVIEW OF CYPRUS ECONOMY

Cyprus is a small, services oriented (services account for approximately 76% of GDP) free market economy with a record of successful economic performance – Rapid growth, full employment conditions, low inflation & external and internal stability. In terms of per capita income, currently estimated at US $ 18,500, Cyprus is classified among the high income countries. It has good business and financial services, modern telecommunications, an educated labor force and a sound legal system. Cyprus' geographical location, tax incentives, and modern infrastructure also make it a natural hub for companies looking to do business with the Middle East, Europe, the former Soviet Union and North Africa.
Cyprus’ entry into the EU in May 2004 marked the crowning point of protracted efforts over the years of its most important political and economic policy objective. As regards the economy, the harmonization process has transformed the whole economic structure of Cyprus and full accession is expected to bring a number of positive results. At the same time, EU membership is a challenge to the business community to strive for increased competitiveness and the upgrading of quality of products & services.
Economic growth in 2003 remained at the same levels as the previous year with the economy growing by 2% in real terms, mainly due to the containment of tourist demand. The low rate of economic growth for a second year in a row was reflected in the labour marke...

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