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About Cyprus - Cyprus Economy |
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Cyprus Economy Cyprus is classified among the high-income countries, with a per capita income of Euro19.676 in 2007. It has a standard of living that is quite high and the performance of the economy compares favourably with that of most EU countries. The island’s economy is characterised by macroeconomic stability, and Cyprus has received favourable evaluations and comments from the European Commission, the International Monetary Fund and other international organisations. Cyprus is among the top twenty worldwide in terms of per capita income.
The success of Cyprus in the economic sphere is attributed, inter alia, 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 entrepreneurship and a highly educated labour force. Cyprus' macroeconomic stability, provide a strong foundation for the successful participation of the island in the euro area. On 1 January 2008 the Republic of Cyprus joined the eurosystem and in so doing introduced the euro as its official currency, replacing the Cyprus pound. Thus, euro banknotes and coins are the country's legal tender. The Cyprus economy recorded real GDP growth over the past five years of 3,1%, which compares favourably with the EU average. This was accomplished in an environment with the unemployment rate at 3.4% and the inflation rate at 2.5%. |
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