The economy of Cyprus is a strong one because of the central location of the island in the Mediterranean Sea. Apart from being a tourist spot and an ideally central business location, it also has a booming real estate industry, all of which are working together to form a strong and stable Cyprus.
However, Cyprus also has a very strong agricultural profile that makes a solid contribution to its overall economy. Some of the agricultural products of Cyprus include cereal grains, olives, citrus, cotton, and potatoes. Apart from all this there are also deciduous fruits and wine grapes that are grown in the many vineyards spread all over the country. North Cyprus, the Turkish part of the island, also grows tobacco, table grapes, and vegetables. Non-vegetarian products include goats, sheep, hogs, poultry, and some cattle. Yet another important industry in the Turkish area is fishing. The southern (Greek) side of Cyprus has strong manufacturing skills that revolve around processed foods and beverages, paper, textiles, chemicals, metals, and refined petroleum.
Tourism is the one common factor that is a big thing for both the north and south regions of Cyprus, though it has sadly been affected by the recent political instability in the general region but recent developments and negotiations are all boding good news for the islands.
The mineral resources of the island include copper (which was name after the island by the Romans) chrome, pyrites, gypsum, and asbestos. Timber is another important product of Cyprus. The Greek (southern) part of Cyprus is economically stronger than the Turkish (northern) side.
While the economy is small by certain standards and prosperous by other standards, what needs special attention is that it is not self contained and even small external shocks can have a devastating effect on it. This can be witnessed throughout the 1990s when undependable growth rates brought out the much vulnerability in the Cypriot economy as the ups and downs in the tourism business sharply matched the ups and downs in the broad economic trends of the island. This is equally true for both sides of the island though the northern region has more problems due to its heavy dependence on Turkey for economic aid.
Cyprus Economy