Republic of Cyprus

...

into a production-sharing agreement with the Cypriot government regarding the block’s commercial development. Cyprus has an open, free-market, services-based economy with some light manufacturing. Manufactured goods accounts around 60% of domestic exports, while potatoes and citrus constitute the principal export crops. (book)

The Turkish Cypriot economy has roughly half the per capita GDP of the south, and economic growth tends to be volatile, given the north’s relative isolation, bloated public sector, reliance on the Turkish lira and small market size. The economy is dominated by the services sector including the public sector, trade, tourism and education, with smaller agriculture and light manufacturing sectors. The economy operates on a free-market basis, although it continues to be handicapped by the political isolation of Turkish Cypriots. The major trading partners is Turkey and rest of EU, that had allowed goods produced or transformed in the area to be sold duty-free to consumers in the government-controlled area and through that area to the rest of the EU. However, assistance from Turkey is still crucial to the Turkish Cypriot economy. (book)

Cyprus’ speedy return to the international markets was a positive step towards restoring confidence and credibility in the eyes of the international business community. The country returned to growth from 2015, posting a growth rate of 1.7% The Cypriot Ministry of Finance predicts a growth rate of 2.5% to 3% for 2017. The main domestic export commodities are pharmaceutical products, raw and manufactured food products, and scrap products. The three leading import partners are Greece, the United Kingdom and Italy. The island mainly imports hydrocarbons, machinery, chemicals, vehicles, and iron and steel. As a small open economy that is currently dependent on energy imports, Cyprus’ trade balance is traditionally in deficit, while its services balance is normally in surplus. (Cyprus Profile – Economy)