The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates over the past decade reflect the economy's vulnerability to swings in tourist arrivals, caused by political instability in the region and fluctuations in economic conditions in Western Europe. Economic policy is focused on meeting the criteria for admission to the EU. As in the Turkish sector, water shortages are a perennial problem; a few desalination plants are now online. The Turkish Cypriot economy has roughly one-third of the per capita GDP of the south. Because it is recognized only by Turkey, it has had much difficulty arranging foreign financing and investment. It remains heavily dependent on agriculture and government service, which together employ about half of the work force. To compensate for the economy's weakness, Turkey provides grants and loans to support economic development. Ankara provided $200 million in 2002 and pledged $450 million for the 2003-05 period. Future events throughout the island will be highly influenced by the outcome of negotiations on the UN-sponsored agreement to unite the Greek and Turkish areas and by the arrangements under which the island joins the EU.

Greek Cypriot area: purchasing power parity - $9.4 billion (2001 est.); Turkish Cypriot area: purchasing power parity - $787 million (2002 est.)

Greek Cypriot area: 1.7% (2001 est.); Turkish Cypriot area: 2.6% (2002 est.)

Greek Cypriot area: purchasing power parity - $15,000 (2001 est.); Turkish Cypriot area: purchasing power parity - $6,000 (2002 est.)

Greek Cypriot area: agriculture 4.6%; industry 19.9%; services 19.9%
Turkish Cypriot area: agriculture 75.5%; industry 20.7%; services 71% (2001)

NA%

Greek Cypriot area: 2.8% (2001 est.); Turkish Cypriot area: 24.5% (2002 est.)

Greek Cypriot area: 291,000; Turkish Cypriot area: 86,300 (2000)

Greek Cypriot area: services 73%, industry 22%, agriculture 5% (2000); Turkish Cypriot area: services 56.4%, industry 22.8%, agriculture 20.8% (1998)

Greek Cypriot area: 3.3%; Turkish Cypriot area: 5.6% (2002 est.)

food, beverages, textiles, chemicals, metal products, tourism, wood products

Greek Cypriot area: -1.4% (2002); Turkish Cypriot area: -0.3% (2002)