Review of Cyprus Economy

REVIEW OF CYPRUS ECONOMY Cyprus is a small, services oriented (services account for nearly 76% of GDP) free trade economy with a usher of successful economic performance ? Rapid growth, in effect(p) manipulation conditions, showtime inflation & external and internal stability. In basis of per capita income, currently estimated at US $ 18,500, Cyprus is classified among the high income countries. It has broad(a) business and financial services, youthful telecommunications, an educated labor push back and a sound legal system. Cyprus geographical location, tax incentives, and modern infrastructure also make it a natural hub for companies tone to do business with the Middle East, Europe, the former Soviet marriage ceremony and North Africa. Cyprus entry into the EU in May 2004 pronounced the crowning point of protracted efforts over the social classs of its virtually important political and economic policy objective. As regards the economy, the harmonisation process has transformed the whole economic structure of Cyprus and full accession is expected to bring a number of positivistic results. At the same time, EU membership is a take exception to the business community to strive for increased competitiveness and the upgrading of whole tone of products & services.

Economic growth in 2003 remained at the same levels as the previous year with the economy growing by 2% in real terms, mainly due to the containment of tourist demand. The low rate of economic growth for a second year in a row was reflected in the labour market with a small increase of the unemployment rate to 3.5%. Inflation was up to 4.1% from 2.8% in 2002 as a result of higher consumer taxes, peculiarly on petrol and an increase in VAT. The fiscal shortfall rose to 6.3% from 4.6% of GDP, overshooting the Maastricht convergence criteria of 3%. The agricultural sector grew by 1.5% and its contribution to GDP remained unchanged at 3.9%. Manufacturing shrank by 2% and its contribution to GDP slipped to 9.4%. The construction sector posted a growth of... If you want to get a full essay, parade it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.