Areas of Practice

Economy Stability and Growth

Cyprus has a record of successful economic performance, reflected in rapid growth, near full employment conditions and macroeconomic stability throughout the post-independence period. The underdeveloped economy, inherited from colonial rule in 1960, has been transformed into a modern economy offering dynamic services with advanced physical and social infrastructure.


In terms of per capita income, estimated at C£9.834 in 2005 (€17.0484), Cyprus is classified by the World Bank among the highincome countries. The average annual rate of growth during the past five years has been about 3,2%, while the average inflation rate has been 2,5% and the average rate of unemployment 4,28%, over the same period.


In addition, Cyprus was ranked 29th in the United Nations 2005 Human Development Index. Considering other socio-economic indicators such as the excellent housing conditions, pollution free environment, and low crime rate, one may conclude that the quality of life, standard of living and economic performance, position Cyprus favourably among the rest of the EU member states.


Furthermore, it should be noted that based on the March 2006 Cost of Living survey of Mercer Human Resource Consulting LLC, Limassol was ranked as one of the least expensive cities globally. The survey compared the average cost of living between 144 cities globally and Limassol was ranked 118th.


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, as well as the existence of a dynamic and flexible entrepreneurial community and a highly educated labour force. Moreover, the economy has benefited from the close cooperation between the public sector and its social partners.

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The Cyprus economy is characterised by macroeconomic stability, combined with high real growth and low inflation 4,1% 2001

Source: Statistical Service of Cyprus, 2006