Cyprus Economy and Business

• GDP: US$20.5 billion(2007).
• Main imports: Consumer goods, raw materials and petroleum.
• Main exports: Pharmaceuticals, potatoes, citrus fruits, cheese and aluminium.
• Main trade partners: Greece, UK, Germany, Italy and France.

Tourism is the main component of the southern service economy but, in recent years, financial services (including ‘offshore' enterprises) have also assumed an important role.
Economic development of the northern occupied part of Cyprus has been severely limited by lack of diplomatic recognition and it continues to rely heavily on economic support from Turkey. The profile of the northern occupied part of Cyprus's agricultural sector is similar to that of the south; manufacturing is relatively insignificant; tourism relies heavily on visitors from the Turkish mainland.

Both parts of the island rely on imported raw fuels for their energy supplies. 

The decision of the north to allow visits across the partition, and the removal of the Ledra Street barrier dividing Nicosia, may presage the development of a cross-border economy, but these links remain problematic due to the unresolved political situation. This concession on the part of the north was driven mainly by the acceptance of the south into the European Union in 2004, and the Eurozone on 1 January 2008. Turkey, which ultimately controls the fate of the northern part of Cyprus, is an aspirant member of the EU, and a solution to the present division of the island is viewed by many as a key facilitator of Turkey's own accession.

Many quality hotels have first class conference facilities; Nicosia is a popular destination for budget-priced conferences and has a number of modern facilities. Most 4- and 5-star hotels have at least basic conference and incentive facilities in what is very much a growing market, especially out of season. Advice can be obtained from the Cyprus Tourism Organisation (see Contact Addresses).

Cyprus Chamber of Commerce and Industry
38 Grivas Dhigenis Avenue, Chamber Building, PO Box 21455, 1509 Nicosia, Cyprus
Tel: (22) 889 800.
Website: www.ccci.org.cy