of the flag; the branches
symbolize the hope for peace and reconciliation between the Greek and
Turkish communities note: bottom between which is a red crescent and
red star on a white field

Economy Cyprus

Economy - overview: Economic affairs are affected by the division
of the country. The Greek Cypriot economy is prosperous but highly
susceptible to external shocks. Erratic growth rates in the 1990s
reflect the economy's vulnerability to swings in tourist arrivals,
caused by political instability in the region and fluctuations in
economic conditions in Western Europe. Economic policy is focused on
meeting the criteria for admission to the EU. As in the Turkish sector,
water shortages are a perennial problem; a few desalination plants
are now online. The Turkish Cypriot economy has less than one-half the
per capita GDP of the south. Because it is recognized only by Turkey,
it has had much difficulty arranging foreign financing, and foreign
firms have hesitated to invest there. It remains heavily dependent on
agriculture and government service, which together employ about half of
the work force. To compensate for the economy's weakness, Turkey provides
substantial direct and indirect aid to tourism, education, industry, etc.

GDP: Greek Cypriot area: purchasing power parity - $9.1 billion (2001
est.); Turkish Cypriot area: purchasing power parity - $1.1 billion
(2000 est.)

GDP - real growth rate: Greek Cypriot area: 2.6% (2001 est.); Turkish
Cypriot area: 0.8% (2000 est.)

GDP - per capita: Greek Cypriot area: purchasing power parity - $15,000
(2001 est.); Turkish Cypriot area: purchasing power parity - $7,000
(2000 est.)

GDP - composition by sector: Greek Cypriot area: agriculture 4.6%,
industry 19.9%, services 75.5% (2001); Turkish Cypriot area: agriculture
8.3%, industry 20.7%, services 71.0% (2000)

Population below poverty line: NA%

Household income or consumption by percentage share: lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): Greek Cypriot area: 1.9% (2001 est.);
Turkish Cypriot area: 53.2% (2000 est.)

Labor force: Greek Cypriot area: 291,000; Turkish Cypriot area: 86,300
(2000)

Labor force - by occupation: Greek Cypriot area: services 73%, industry
22%, agriculture 5% (2000); Turkish Cypriot area: services 56.4%,
industry 22.8%, agriculture 20.8% (1998)

Unemployment rate: Greek Cypriot area: 3% (2001 est.); Turkish Cypriot
area: 5.6% (1999 est.)

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