Country profile - Distinguishing factors (Cyprus)

SOER 2010 Country profile (Deprecated)

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SOER Country profile from Cyprus

Published: 26 Nov 2010 Modified: 11 May 2020

Cyprus is the third largest island in the Mediterranean, situated at its north-eastern corner. Being at the intersection of important transport and communication routes it links Europe to the Middle East and Asia. The history of the island, being one of the oldest recorded in the world, was largely influenced by its geographic location. Its strategic position at the crossroads of three continents, as well as its considerable supplies of copper and timber in the past, combined to make it a highly desirable territorial acquisition. Over the centuries, Cyprus was conquered by various nations but managed to retain intact its Greek identity, language and culture. Its geographic position, the country’s island character, its isolation over the centuries from the mainland and its climatic conditions have all led to the creation of a great biological diversity and a significant number of native species.

Biodiversity

Being an island, Cyprus is sufficiently isolated to have allowed the evolution of a strong endemic element. At the same time, being surrounded by big continents, it incorporates elements of the neighbouring land masses. About 7% of the indigenous plants of the island – 140 different species and subspecies – are endemic to Cyprus.

Today, the fauna of Cyprus includes some 7 species of land mammals, 26 species of amphibians and reptiles, 365 species of birds and a great variety of insects, while the coastal waters of the land give shelter to 197 fish species and various species of craps, sponges and echinodermata. The largest wild animal on the island is the Cyprus moufflon (Ovis gmelimi ophion), a rare type of wild sheep that can only be found in Cyprus.

Cyprus is used by millions of birds as a stopover during their migration from Europe to Africa and back. The main reason for that is the existence on the island of two wetlands with unique and international importance. The island’s sea creatures include seals and turtles. Two marine turtles, the Green turtle (Chelona mydas) and the Loggerhead turtle (Caretta caretta) breed regularly on the island’s sandy beaches and are strictly protected.

Climate

General: Cyprus has an intense Mediterranean climate with hot, dry summers from mid-May to mid-September and rainy, rather changeable, winters from November to mid-March, which are separated by short autumn and spring seasons with rapid change in weather conditions. The climatic conditions of the country are influenced by its morphology, island character and geographic position. The central Troodos massif, rising to 1.951 metres and, to a lesser extent, the long narrow Kyrenia mountain range, with peaks of about 1.000 metres, play an important part in the meteorology of Cyprus.

Rainfall: Rainfall in the warmer months contributes little to water resources and agriculture. The small amounts which fall are rapidly absorbed by the very dry soil and soon evaporate in high temperatures and low humidities. Autumn and winter rainfall, on which agriculture and water supply generally depend, is somewhat variable. The average rainfall for the year as a whole is about 480 millimetres.

Trends in precipitation and temperature during the 20^th century: During the 20^th century remarkable variations and trends were observed in the climate of Cyprus, particularly in the two basic climatic parameters, precipitation and temperature. Specifically, the precipitation presented a decreasing and the temperatures an increasing trend. The rates of change of precipitation and temperature are greater during the second half of the century compared to those in the first half. In the last decades the number of years of low precipitation and drought are greater than before. The warmest years of the century were observed in the last 20 years.

The decrease in the amount of precipitation was considerable and occurred mainly in the second half of the century, as a result of the higher frequency of occurrence in the number of years of low precipitation and drought. While the average annual precipitation in the first 30-year period of the century was 559mm, the average precipitation in the last 30-year period was 462mm, which corresponds to a decrease of 17%. Precipitation levels are shown in figures 1 and 2. On the other hand, the average annual temperature in Cyprus, both in urban and rural areas presented an increasing trend, with an annual rate of increase of 0.01^oC. The annual temperatures are given in figure 3.

Climatic conditions after 1990: The average annual precipitation in the period 1991/92 – 2007/08 (17 hydrometeorological years) is 457mm or 9% lower than normal (503mm, period 1960 – 1990). The average annual temperature in the period 1991 – 2007 is 17.7^oC or 0.5^oC higher than normal (17.2^oC, period 1961 – 1990). According to the above rate of change, it is expected that by 2030 precipitation will decrease by 10 – 15% and temperature will increase by 1.0 – 1.5^oC compared to the normal values for the period 1960 – 1990. This decline in rainfall and rise in temperatures is putting considerable pressure on the natural environment and water resources of the island.

[Source: Meteorological Service; http://www.moa.gov.cy/moa/ms/ms.nsf]

WATER RESOURCES

Over the last couple of decades, all of Cyprus’s water resources were originating from rainfall. The rainfall is not uniformly distributed, while Cyprus is experiencing a big variation in rainfall from year to year, and also frequent droughts which often have a duration of two to three years.

Rivers: Most rivers originate in the Troodos area. The seasonal distribution of surface runoff follows the seasonal distribution of precipitation, with minimum values during the summer months and maximum values during the winter months. As a result of the climate, there are no rivers with perennial flow along their entire length. Most rivers flow 3 to 4 months a year and are dry during the rest of the year. Only parts of some rivers upstream in the Troodos areas have a continuous flow.

Lakes: As a result of the dry climate, there are only 5 natural lakes which are brackish or salt. The other water bodies are artificial, i.e. dams and reservoirs constructed for water storage. All the lakes in Cyprus can be characterized as dynamic systems. The natural salt and brackish lakes dry up regularly, but not every year. The amount of water in the reservoirs and storage basins is depending on the rainfall and use. The reservoirs are also mainly filled by the inflow of water from rivers. During winter, provided there is adequate precipitation, water is collected, most of which is during the summer period. Consequently, the water level and size of these lakes is variable. As the purpose of all reservoirs and storage basins is to provide water for drinking or irrigation, they often dry out.

Groundwater bodies: Most of the Island aquifers are phreatic, developed in river or coastal alluvial deposits. All the aquifers of Cyprus (66) have been grouped into 20 groundwater bodies, mainly based on lithology, the hydraulic characteristics, the pressures and the importance of each aquifer, as seen in figure 5.

Planning: Despite the progress made in the field of water development and the construction of dams, due to the increase in water demand and the declining rainfall trends as a result of climatic changes, the available water quantities for drinking and irrigation are not sufficient to meet demands, with adverse impacts on agriculture, the economy and the environment. As a result, the current focus of government policy is to decouple the water supply from rainfall through the maximum potential exploitation of non-conventional water resources, such as recycled water and desalination.

[Source: Water Development Department; http://www.cyprus.gov.cy/moa/wdd/Wdd.nsf]

Economy

The Cypriot economy is small, robust and fairly flexible, and has shown that it is capable of adapting to rapidly changing circumstances. In brief, the main characteristics of the Cyprus economy are the following:

The dominant role of the private sector in the production process, while the role of the state is a supportive one.
The small size of the domestic market, which constitutes an adverse factor in attaining economies of scale and in the development of satisfactory intersectoral relationships.
The small size of enterprises, which hinders the exploitation of economies of scale and the adoption of advanced technologies and modern methods of management, production, design and marketing.
The small size of the labour force and the shortages observed in technical and low-skilled occupations.
The openness of the economy, with total imports and exports of goods and services accounting to a significant percentage of the GDP.

The predominance and increasing importance of the services sectors. This development reflects the gradual restructuring of the Cyprus economy from an exporter of minerals and agricultural products, mainly copper, asbestos and citrus fruits in the period 1961-73 and an exporter of manufactured goods, mainly clothing and footwear, in the latter part of the 1970s and the early part of the 80s, to an international tourist, business and services centre during the 1980s and 1990s.

Partial dependence on the tourist sector, whose total contribution, derives from the value added, created, either directly through the purchases of goods and services by tourists in various sectors of economic activity, or indirectly through intersectoral linkages.

Today, Cyprus ranks tenth on the list of leading maritime nations and is considered as one of the leading third-party ship management centres in the world. Furthermore, due to its small domestic market and the open nature of its economy, access to international markets is of the utmost importance for Cyprus. As a result, trade has traditionally been one of the main sectors of the Cyprus economy, contributing significantly to the economic growth of the island.

The GPD for the period 2000 – 2008 and the growth rate (percentage change compared to the same quarter of the previous year) of the GDP for the period 2007 – 2009 are shown in tables 1 and 2 respectively.

Table 1: NATIONAL ACCOUNTS
	2000	2001	2002	2003	2004	2005	2006	2007	2008*
GDP at current market prices (€mn)	9,883.2	10,627.9	10,979.7	11,761.2	12,653.6	13,462.3	14,435.2	15,879.1	17,247.8
% annual change at current prices	9.1	7.5	3.3	7.1	7.6	6.4	7.2	10.0	8.6
GDP at constant 2005 prices, chain linking method (€mn)	11,482.3	11,944.5	12,194.9	12,430.0	12,955.1	13,462.3	14,017.5	14,736.7	15,269.9
% annual change at constant prices	5.0	4.0	2.1	1.9	4.2	3.9	4.1	5.1	3.6
Notes:
1. * Provisional figures.
2. The National Accounts data for the year 2007 has been revised on the basis of the results from the economic surveys for the reference year, while the revised data for the year 2008 is based on the most recently available indices. The revised annual data will be also incorporated into the forthcoming release of quarterly national accounts.
3. The constant price series is the result of its re-calculation with 2005 as new reference-base year and according to the chain linking method as required by Eurostat
*(Last Updated 09/11/2009)*
COPYRIGHT © :2008, REPUBLIC OF CYPRUS, STATISTICAL SERVICE

Table 2: Growth rates of GDP at constant prices
YEAR	QUARTER	Gross Domestic Product (GDP)	GDP (Seasonally and working day adjusted)
		compared to the same quarter of the previous year (percentage change)	compared to the previous quarter (Percentage change)	compared to the same quarter of the previous year (Percentage change)
2007	Q1	5.3	1.9	5.3
	Q2	4.8	0.9	4.9
	Q3	5.1	1.3	5.0
	Q4	5.4	1.1	5.3
2008	Q1	4.8	1.2	4.6
	Q2	4.1	0.8	4.5
	Q3	3.3	0.2	3.4
	Q4	2.4	-0.2	2.1
2009	Q1	0.7	-0.5	0.3
	Q2	-1.5	-0.8	-1.3
	Q3	-2.5	-0.6	-2.0
The GDP growth rate in real terms during the third quarter of 2009 is negative and estimated at -2,5% over the corresponding quarter of 2008. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at -2,0%. The contraction of the economy during the third quarter of 2009 is mainly attributed to the very negative growth rates observed in Construction and Hotels and Restaurants as well as the negative performance of Manufacturing, Trade and Transport activities. The Financial Intermediation activities as well as the broad Services sector continue to record positive growth rates but at a decelerating rate. It must be noted that the constant price series, re-calculated with 2005 as new reference-base year, have been incorporated in the quarterly data. Also, the changes observed in relation to the Flash Estimate, are mainly due to substitution of quarterly index for better depiction of short-term developments in the Construction sector.
*(Last Updated 11/12/2009)*

[Statistical Service, http://www.mof.gov.cy/mof/cystat/statistics.nsf

Ministry of Economics, http://www.mof.gov.cy/mof/mof.nsf]

GOVERNANCE

Executive power: Cyprus is an independent, sovereign Republic with a presidential system of government. Under the 1960 Constitution, executive power is vested in the President of the Republic, elected by universal suffrage to a five-year term of office. The executive power is exercised by the President of the Republic. The President exercises executive power through a Council of Ministers appointed by him/her. The Ministers may be chosen from outside the House of Representatives.

For the exercise of executive power, the President of the republic of Cyprus appoints the Ministers that constitute the Ministerial Council. In Cyprus, exist today eleven Ministries: Ministry of Defense, Ministry of Agriculture, Natural Resources and Environment, Ministry of Justice and Public Order, Ministry of Commerce, Industry and Tourism, Ministry of Foreign Affairs, Ministry of Labour and Social Insurance, Ministry of Interior, Ministry of Finance, Ministry of Education and Culture, Ministry of Communications and Works and Ministry of Health. The Council of Ministers is responsible for the governance of the Republic of Cyprus, coordinates and supervises the public services, supervises and allocates the fortune of the Republic, and processes the budget and bills before they are presented to the House of Representatives.

Legislative power: Legislative power in the Republic of Cyprus is exercised by the House of Representatives. Its establishment, composition and functions are governed by articles 61-85 (Part IV) of the Constitution of the Republic of Cyprus and by the Standing Orders (Internal Rules of Procedure) of the House of Representatives, which was approved by the House in 1980. The House Rules were revised in 1985 and in 1995, so as to be consistent with today’s conditions and needs and based on experience acquired in the meantime.

Legislative functions of the House of Representatives: The legislative functions comprise the enactment, amendment or abolition of legal rules, namely bills and regulations, which are submitted to the House by the executive as well as private bills, which are tabled by Representatives.

Parliamentary control: Through the exercise of parliamentary control, the House monitors Government policies. This is done mainly through questions to the competent Ministries, concerning social, economic, political, cultural, environmental and other issues, as well as matters of general or special interest, introduced by Representatives for debate.

Parliamentary seatsParliamentary seats: Out of a total of 80 seats in the House of Representatives, 56 are filled by Greek Cypriot successful candidates belonging to single parties and/or party coalitions or combinations, as well as by independent candidates, all of whom are elected by universal, direct, secret and compulsory vote for a five-year term of office. Initially, the seats were 50 in total, of which 35 (70%) went to Greek Cypriots and 15 (30%) to Turkish Cypriots. The same ratio was maintained after their increase to 80, through a House decision to that effect in 1985. 24 out of these belong to the Turkish Cypriots and remain vacant due to the Turkish Cypriot Members’ withdrawal in 1963, after intercommunal strife had broken out and the continuing to this day irregular situation, as a result of the Turkish invasion of 1974.

Judiciary power: The administration of justice is exercised by the island's separate and independent judiciary. The Judicial Power is vested in the Supreme Court and First Instance Courts established by law.

[Source: Publications and Information Office, http://www.moi.gov.cy/moi/pio/pio.nsf]

Population

The population of Cyprus is estimated at 885.6 thousand at the end of 2008, compared to 877.6 thousand the previous year, with an increase of 0.9%. Of the total population in 2008, 668,700 (75%) belong to the Greek Cypriot Community, 88,700 (10.0%) to the Turkish Cypriot Community and 128,000 (14.5%) are foreign residents. The population of the Government controlled area is estimated at 796.9 thousand at the end of 2008, compared to 789.3 thousand at the end of 2007, recording an increase of 1.0%. Population levels are given in figures 6 and 7.

The population of Cyprus accounts for 0.2% of the total population of the 27 European Union countries, having the third smallest population ranking behind Malta and Luxemburg. However, Cyprus has one of the highest rate of population growth among the 27 EU countries, which is explained by its particularly significant positive net migration balance. The rate of natural increase is also high, the third largest behind Ireland and France. The age composition of the population portrays a somewhat younger age-structure than the European average. Life expectancy at birth for females is close to the average European while for males is above the European average.

Labour market

The labour market in Cyprus exhibits conditions of near full employment, having shown a moderate upward trend during the last few years. The structure of employment by sector has gone through major changes in the last two to three decades, with a large increase of employment in the tertiary sector and a decrease in the primary and secondary sectors. In general, the labour market in Cyprus can be considered to be functioning effectively.

Table 3: LABOUR MARKET
	2000	2001	2002	2003	2004	2005	2006	2007	2008*
Employment rate (%)	65.7	67.8	68.6	69.2	68.9	68.5	69.6	71.0
Unemployment rate (%)	4.9	3.8	3.6	4.1	4.7	5.3	4.6	4.0	3.8
The employment rate is calculated by dividing the number of persons aged 15 to 64 in employment by the total population of the same age group. Unemployment rate represent unemployed persons as a percentage of the labour force (total number of people employed and unemployed aged 15 to 74).
*Source: Statistical Service – Structural Indicators 2009*

[Source: Publicity and Information Office]

Town planning and housing

The Department of Town Planning and Housing (Ministry of Interior) controls urban and spatial planning. A three-tier hierarchy of development plans is based on the concepts of the "Island Plan", which refers to the national territory and the regional distribution of resources and development opportunities, the "Local Plan", which refers to major urban areas or areas undergoing intensive development and rapid changes, and the "Area Scheme", which refers to areas of a smaller scale. Area schemes are more detailed and specifically project-oriented, gradually becoming indispensable tools for addressing sustainability issues and enabling the implementation of planning policy.

New developments are controlled by a set of Regulations under the Streets and Buildings Law. Furthermore, in areas within Local Plans published under the Town and Country Planning Law, specific set of provisions and guidelines govern a series of factors, including building height, volume and density, the subdivision of land, provision of public amenities, parking requirements and intervention in sensitive historic areas.

[Source: Publications and Information Office. Additional information: Town Planning and Housing Department, http://www.moi.gov.cy/moi/tph/tph.nsf]