Investment immigration to Cyprus to learn about the Cyprus economy: Since its independence in 1960, Cyprus has formulated corresponding economic policy measures and phased development plans based on its national conditions and the internal and external environments faced at different times. It has strengthened infrastructure construction, implemented an open-door policy, and developed its national economy according to local conditions. While focusing on the development of agriculture, manufacturing, and construction, it has prioritized the development of the tertiary industry, primarily financial services and tourism, and has fully utilized its superior geographical location and geopolitical advantages to develop foreign trade.
Although Cyprus faces problems such as a lack of fresh water, limited agricultural development, a weak industrial base, a single industrial structure, and high external dependence, its economic development has still achieved significant results, with an average annual growth rate of 6% in the 1980s and 4% in the 1990s. After more than 40 years of development, Cyprus has gradually transformed from an agricultural country in the 1970s into a country where the tertiary industry is the main economic pillar.
The industrial structure of the Cyprus economy is as follows:
The primary industry is dominated by agriculture. Although agriculture is no longer the pillar industry of the Cyprus economy, it still plays an important role. In addition to exports and increasing the country's foreign exchange sources, Cyprus's agriculture also provides 8.6% of employment opportunities and raw materials for the country's industrial production.
The scope of Cyprus's agriculture includes the production of agricultural and sideline products such as cereals, potatoes, vegetables, citrus, and grapes, as well as animal husbandry, forestry, and fisheries. The main agricultural export products are potatoes, vegetables, and citrus.
The secondary industry in Cyprus accounts for approximately 20% of GDP. Among them, manufacturing output accounts for 8.6% of GDP, and employees account for 9.1% of the employed population. Because the Cyprus market is not large, most industrial products and processed agricultural products are used for export.
Most industrial enterprises in Cyprus are private and small in scale, with most employing fewer than 30 workers. Plastics, clothing, footwear, and chemicals are important products of Cyprus's industry, and their role in the industry has surpassed that of the traditional agricultural and sideline product processing industry.
The tertiary industry in Cyprus is led by financial services and tourism, mainly including financial services, tourism, transportation, communications, trade, banking, insurance, real estate, and public management and services. The output value of the service industry accounts for about 78% of GDP, and employees account for 80% of the employed population. It is the fastest-growing field in the Cyprus economy in recent years, so the Cyprus economy is often referred to as a "service economy."
Among them, tourism is one of the pillar industries of the Cyprus economy. The number of tourists coming to Cyprus each year is more than three times the island's population, 40% of whom are "repeat visitors," most of whom are Europeans. The output value of Cyprus's tourism industry accounts for 20% of GDP. In addition to tourism, the financial services and banking sectors have grown significantly in the tertiary industry in recent years. In 2010, the per capita GDP of Cyprus was 21,565 Euros.
Cyprus is a country heavily dependent on imports. National economic development and daily necessities for the population, such as industrial machinery and transport equipment, fuel, and food, mainly rely on imports. In 2010, the total import value was 6.517 billion Euros, the total export value was 1.137 billion Euros, and the trade deficit was 5.38 billion Euros. The main reasons for the sluggish exports in Cyprus are reduced external demand and a lack of price competitiveness.
Cyprus's main trading partner is Europe, with more than 50% of exports and more than 60% of imports taking place within Europe. This situation has become more prominent since joining the European Union.
The strategic goal of Cyprus's economic development is to establish a regional commercial and financial center, develop high-tech fields and the production of high-tech products, and reduce the economy's excessive dependence on tourism.
