Foreign trade

International trade is of considerable importance to the Cyprus economy. On the production side, the lack of raw materials, energy resources and heavy industry for the production of capital goods, necessitates the importation of such input. On the demand side, because of the small size of the domestic market, exports are vital in supplementing aggregate demand for Cypriot agricultural, mineral and manufacturing products.

The European Union and the neighbouring Middle Eastern countries absorb the majority of Cyprus’ exports.

Cyprus imports large quantities of durable consumer goods, capital equipment and raw materials mainly from the European Union and oil from the neighbouring Middle East countries in order to satisfy its growing domestic market and industrial needs.