The Cyprus economy

The Cyprus economy is based on the free enterprise system. The private sector is the backbone of economic activity, with the Government’s role being limited to monitoring the economy and the provision of public utilities.

The main economic indicators of the Cyprus economy are given in the table below:

Key Economic Indicators 2004 2005 2006 2007 2008(p)
Inflation rate 2,3% 2,6% 2,5% 2,4% 4,7%
Registered Unemployed 3,5% 3,5% 3,4% 3,1% 2,9%
Gross Domestic Product (€ million)
 12.653,6 13.462,3 14.435,2 15.565,6 16.962,8
Gross Domestic Product (Real Growth) 4,2% 3,9% 4,1% 4,4%  
Gross Domestic Product Per Capita (€) 17.100 17.800 18.700 19.900(p)  
General Government Surplus/(Deficit) (€ million) (515,6) (325,5) (172,5) 537,4  

Source: Central Bank of Cyprus - February 2009