Synopsis of Economic Activities
Cyprus has a record of successful economic performance, reflected in rapid growth, full employment conditions and external and internal stability, almost throughout the post-Independence period. The underdeveloped economy, inherited from Colonial Rule in 1960, has been transformed into a modern economy, with dynamic services, industrial and agricultural sectors and advanced physical and social infrastructure.
In terms of per capita income, currently estimated at $ 15.000 (2000), Cyprus is classified among the high-income countries. These achievements appear all the more striking, bearing in mind the severe economic and social dislocation caused by the Turkish invasion of 1974 and the continuing occupation of the northern part of the Island by Turkey.
The success of Cyprus in the economic sphere is attributed, among other factors, to the adoption of a market-oriented economic system, the pursuance of sound macroeconomic policies by the Government, as well as the existence of a dynamic and flexible entrepreneurial community and a highly educated labor force.
During the last decade, the Cyprus economy has intensified its links to Europe. The relations with the European Union, the largest trading partner of Cyprus, are currently governed by a Customs Union Agreement, which basically provides for a gradual and mutual dismantling of trade barriers.