Introduction Key Economic Facts Risk Assessment (Provided by Coface) Cyprus is an in the Middle East in the Eastern Income Level (by per capita High Income Country rating: A4 - A somewhat shaky political and Mediterranean Sea. Nearby include , , GNI): economic outlook and a relatively volatile business and Lebanon. Geographically, Cyprus is a central with Level of Development: Developed environment can affect corporate payment behavior. to the north and south. The GDP, PPP (current international $36.95 billion (2019) government system is a republic; the chief $): Corporate default probability is still acceptable on average. of state and head of government is the GDP growth (annual %): 3.08% (2019) Business Climate rating: A3 - The business environment president. Cyprus has a market economy GDP per capita, PPP (current $41,254.40 (2019) is relatively good. Although not always available, corporate system in which the prices of goods and international $): financial information is usually reliable. Debt collection and services are determined in a free price system. Cyprus is a Manufacturing, value added (% 5.38% (2019) the institutional framework may have some shortcomings. member of the European Union (EU). of GDP): Current account balance (BoP, -$1.65 billion (2019) Intercompany transactions may run into occasional current US$): difficulties in the otherwise secure environments rated A3. Inflation, consumer prices 0.25% (2019) Strengths (annual %): • Central geographical location between , Labor force, total: 632,970 (2020) Unemployment, total (% of 7.23% (2020) and favours the transhipment industry total labor force) (modeled ILO • Offshore finance hub estimate): • Rich, unexploited offshore natural gas deposits Imports of goods and services $18.20 billion (2019) (current US$): • Skilled, English-speaking workforce Location: Western Asia Exports of goods and services $17.93 billion (2019) • Relatively successful pandemic management Capital City: Nicosia (+2 GMT) (current US$): Weaknesses Chief of State: President Nicos Anastasiades • Divided territory, increasingly tense geopolitical Head of Govt.: President Nicos Anastasiades neighborhood Currency: Euro (EUR) GDP Composition % Services Industry Manufacturing • Small domestic market, isolated from the rest of Major Languages:

Greek (official) 80.9%, Turkish (official) 0.2%, English 4.1%, Europe 73 Romanian 2.9%, Russian 2.5%, • Highly dependent on and the UK as export Bulgarian 2.2%, Arabic 1.2%, Filipino 13 1.1%, other 4.3%, unspecified 2 5 markets and sources of financing (Brexit risk) 0.6%

*Although Manufacturing is included in the Industry figures, it is also separately • Slow legal process, poor enforcement of contracts Primary Religions:

Orthodox Christian 89.1%, Roman reported because it plays a critical role in economy. • Heavy debt load for the state, banks, companies, and Catholic 2.9%, Protestant/Anglican Rankings 2%, Muslim 1.8%, Buddhist 1%, other households (includes Maronite, Armenian Church, Index Rank • Weak industrial diversification (, construction, Hindu) 1.4%, unknown 1.1%, Corruption Perceptions Index 41 / 180 none/atheist 0.6% (2011 natural gas, finance) est.)

Global Competitiveness Index 44 / 141 U.S. Embassy Calling Code: 357 Global Enabling Trade Index 47 / 136 Voltage: 240 Index of Economic Freedom 44 / 179 U.S. Embassy Nicosia International Logistics Performance Index (LPI) 45 / 160 Metochiou & Ploutarchou Street Key Websites Inward FDI Potential Index 47 / 139 2407, Engomi KOF Index of Globalization 14 / 185 Nicosia, Cyprus Main Government Page: cyprus.gov.cy Networked Readiness Index (NRI) 40 / 139 Phone: 357-22-393939 Commerce Ministry: mcit.gov.cy Investment Promotion investcyprus.org.cy https://cy.usembassy.gov Agency:

Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV