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Economy - overview:
The Republic of Cyprus has a capitalist economy dominated by the service sector, which accounts for 76% of GDP. Tourism and financial services are the most important sectors; erratic growth rates over the past decade reflect the economy's reliance on tourism, which often fluctuates with political instability in the region and economic conditions in Western Europe. Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and could adopt the euro within the next two years. Although sluggish tourism and poor fiscal management have resulted in high budget deficits since 2001, the government is pursuing reforms to trim the deficit. As in the Turkish sector, water shortages are a perennial problem; a few desalination plants are now on-line. After 10 years of drought, the country received substantial rainfall from 2001-03, alleviating immediate concerns. The Turkish Cypriot economy has roughly one-third of the per capita GDP of the south, and economic growth tends to be volatile, given north Cyprus's relative isolation, bloated public sector, reliance on the Turkish lira, and small market size. The Turkish Cypriot economy grew 15.4% in 2004, fueled by growth in the construction and education sectors as well as increased employment of Turkish Cypriots in the Republic of Cyprus. The Turkish Cypriots are heavily dependent on transfers from the Turkish government. Under the 2003-06 economic protocol, Ankara plans to provide around $550 million to the "TRNC." Agriculture and services, together, employ more than half of the work force, especially with tourism growth and the easing of border restrictions with the Greek Cypriots since April 2003. |
Trade Fairs,
Exhibitions, Conferences: |
Cyprus State Fairs Authority
The Cyprus State Fairs Authority established in 1968 as a semi-goverment corporation governed by a Board of Directors appointed by the Council of Ministers. The CSFA organizes and promotes the annual Cyprus International Fair. International companies use Cyprus as the basis for the promotion of their products in the markets of neighboring countries. Within this framework and in order to enhance the efforts of international and local firms to penetrate the markets of the Middle East and East European countries, the Cyprus State Fairs Authority – the official organizer of fairs and exhibitions in Cyprus – is organizing a number of exhibitions every year with hundreds of participants from all over the world. Alongside the exhibitions the CSFA organizes associated Conferences, establishing a significant platform for seeing and discussing the latest developments. |
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