Economy - overview: Economic affairs are affected by the division of the country. The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates in the 1990s reflect the economy's vulnerability to swings in tourist arrivals, caused by political instability on the island and fluctuations in economic conditions in Western Europe. Economic policy is focused on meeting the criteria for admission to the EU. As in the Turkish sector, water shortage is a growing problem, and several desalination plants are planned. The Turkish Cypriot economy has about one-fifth the population and one-third the per capita GDP of the south. Because it is recognized only by Turkey, it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. It remains heavily dependent on agriculture and government service, which together employ about half of the work force. Moreover, the small, vulnerable economy has suffered because the Turkish lira is legal tender. To compensate for the economy's weakness, Turkey provides direct and indirect aid to tourism, education, industry, etc.
GDP: Greek Cypriot area: purchasing power parity - $9.7 billion (2000 est.); Turkish Cypriot area: purchasing power parity - $830 million (1999 est.)
GDP - real growth rate: Greek Cypriot area: 4.2% (2000 est.);
Turkish Cypriot area: 4.9% (1999 est.)
GDP - per capita: Greek Cypriot area: purchasing power parity - $16,000 (2000 est.); Turkish Cypriot area: purchasing power parity - $5,300 (1999 est.)
GDP - composition by sector: Greek Cypriot area: agriculture 6.3%, industry 22.4%, services 71.3% (1998); Turkish Cypriot area: agriculture 11.8%, industry 20.5%, services 67.7% (1998)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices): Greek Cypriot area: 4.2% (2000 est.); Turkish Cypriot area: 58% (1999 est.)
Labor force: Greek Cypriot area: 291,000; Turkish Cypriot area: 86,300 (2000)