Northern Cyprus Economy Competitiveness Report 2021-2022 Special Edition Northern Cyprus Economy Competitiveness Report 5 products, new strategies for high value-added and advantageous agricultural products are determined, and opinions and suggestions are presented on the foreign market competitiven Contact online >>
Northern Cyprus Economy Competitiveness Report 2021-2022 Special Edition Northern Cyprus Economy Competitiveness Report 5 products, new strategies for high value-added and advantageous agricultural products are determined, and opinions and suggestions are presented on the foreign market competitiveness of the agricultural sector.
North Cyprus''s economy increased by an average of 3.6% between 2010 and 2017, after contracting by 2.9% in 2008 and 5.5% in 2009 as a result of the 2008-2009 global financial crisis. With considerable rises in currency rates in the last months of 2018, the North Cyprus economy grew by 1.3% in 2018 and 0.2% in 2019.
Industry (light manufacturing) contributes 22% of GDP and agriculture 9%. [8] Northern Cyprus''s economy operates on a free-market basis, with a significant portion of administration costs funded by Turkey. Northern Cyprus uses the Turkish lira as its currency, which links its economic situation to the economy of Turkey.
KTTO''s 2019-2020 report ranked Northern Cyprus 107 among 141 economies, dropping eighteen places from its ranking in 2019. For more information and requirements on establishing a company, obtaining licenses, and doing business visit:
The economy of Northern Cyprus is dominated by the services sector (69% of GDP in 2007), which includes the public sector, trade, tourism and education. Industry (light manufacturing) contributes 22% of GDP and agriculture 9%.[8] Northern Cyprus''s economy operates on a free-market basis, with a significant portion of administration costs funded by Turkey. Northern Cyprus uses the Turkish lira as its currency, which links its economic situation to the economy of Turkey.
Because of its international status and the embargo on its ports, the TRNC is heavily dependent on Turkish military and economic support.[15] All TRNC exports and imports have to take place via Turkey, unless they are produced locally, from materials sourced in the area (or imported via one of the island''s recognised ports) when they may be exported via one of the legal ports.
The continuing Cyprus problem adversely affects the economic development of the TRNC. The Republic of Cyprus, as the internationally recognised authority, has declared airports and ports in the area not under its effective control, closed. All UN and EU member countries respect the closure of those ports and airports according to the declaration of the Republic of Cyprus. The Turkish community argues that the Republic of Cyprus has used its international standing to handicap economic relations between TRNC and the rest of the world.[16][17]
Despite the constraints imposed by the lack of international recognition, the TRNC economy turned in an impressive performance. The nominal GDP growth rates of the TRNC economy in 2001-2005 were 5.4%, 6.9%, 11.4%, 15.4% and 10.6%, respectively.[21][22] The real GDP growth rate in 2007 is estimated at 2%.[8] This growth has been buoyed by the relative stability of the Turkish Lira and a boom in the education and construction sectors.
The growth was further buoyed by the arrival of northern European home buyers, investing in holiday villas. Over 10,000 British people, including expatriates, purchased holiday villas in Northern Cyprus to live in permanently, or to visit during the summer months. These settlers generated over $1 billion between 2003 and 2007.
Between 2002 and 2007, Gross National Product per capita more than tripled (in current US dollars):[23]
Studies by the World Bank show that the per capita GDP in TRNC grew to 76% of the per capita GDP in the Republic of Cyprus in PPP-adjusted terms in 2004 (US$22,300 for the Republic of Cyprus and US$16,900 for the TRNC).[21][22] Official estimates for the GDP per capita in current US dollars are US$8,095 in 2004 and US$11,837 in 2006.[23]
Although the TRNC economy has developed in recent years, it is still dependent on monetary transfers from the Turkish government. Under a July 2006 agreement, Ankara is to provide Northern Cyprus with an economic aid in the amount of $1.3 billion over three years (2006–2008).[8] This is a continuation of ongoing policy under which Turkish government allocates around $400 million annually from its budget to help raise the living standards of the Turkish Cypriots.[24][25][26]
The tourism sector of Northern Cyprus has seen high levels of constant growth. 1.23 million tourists visited Northern Cyprus in 2013, 920,000 of these being from Turkey. The number of tourists had doubled since 2006, which saw 570,000 tourists. The revenue from tourism was at $616 million, up from $390 million in 2009 and $288 million in 2004.[14]
The number of tourist beds increased to 17,000 in 2011.[27]
The Banking sector grew 114% from 2006 to 2011.[27] TRNC Development Bank is a member of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).[28]
WTO statistically counts products from Northern Cyprus as products from Turkey.[29]
In 2014, the exports of Northern Cyprus were at $130 million, with an increase of 11.9% from 2013, and the imports were at $1.51 billion, with an increase of 3.6% from 2013. The main trading partner is Turkey, as of 2014, 64.7% of Turkish Cypriot imports are from and 58.5% of Turkish Cypriot exports are to Turkey. Middle Eastern countries are the destination of 30.3% of Turkish Cypriot exports and their share in the exports of Northern Cyprus has greatly increased, being at only 17.8% at 2006. The share of exports to the European Union has greatly decreased from 15.0% in 2006 to 6.2% in 2014, while imports from the European Union were 15.5% of all imports.[5]
The agricultural sector is the source of the vast majority of exported goods. In 2013, 32.4% of exported products were raw agricultural products and 50.8% were processed agricultural products. 8.7% of the exports was minerals, 3.0% clothing and 5.1% other industrial products. Raw citrus by itself constituted 19.1% of all exports.[30] The most important exported products, in order of the revenue they produce, are dairy products, citrus, rakı, scrap, citrus concentrate, chicken, and potatoes.[31]
Below is a table showing the distribution of exports of Northern Cyprus by goods:
Official websites use .gov
Cyprus is the eastern-most member of the European Union (EU), situated at the crossroads of three continents – Europe, Africa, and Asia – and thus occupies a strategic place in the Eastern Mediterranean region.
The Government of the Republic of Cyprus is the only internationally recognized government on the island, but since 1974 the northern third of Cyprus has been administered by Turkish Cypriots. This area proclaimed itself the "Turkish Republic of Northern Cyprus" ("TRNC") in 1983. The United States does not recognize the "TRNC" as a government, nor does any country other than Turkey. A substantial number of Turkish troops remain in the northern part of the island. A buffer zone, or "green line," patrolled by the UN Peacekeeping Force in Cyprus (UNFICYP), separates the two parts. The Republic of Cyprus and the area administered by Turkish Cypriots are addressed separately below.
U.S. citizens can travel to the north / Turkish Cypriot area, but as of March 2021 COVID-19 restrictions have made transit between north and south difficult for non-residents. U.S. companies can invest in the north but should be aware of legal complications and risks due to the lack of international recognition, tensions between the two communities, and isolation of the north from the eurozone. Turkish Cypriot businesses are interested in working with American companies in the fields of agriculture, hospitality, renewable energy, and retail franchising. Significant Turkish aid and investment flows to the "TRNC." A political settlement between the communities would be a powerful catalyst for island-wide Cypriot economic growth and prosperity.
Policies Towards Foreign Direct Investment
Cyprus Embassy Trade Center – New York13 East 40th StreetNew York, NY 10016Phone: (212) 213-9100Fax: (212) 213-9100Website: https://
AREA ADMINISTERED BY TURKISH CYPRIOTS
Turkish Cypriots welcome FDI and are eager to attract investments, particularly those that will lead to the transfer of advanced technology and technical skills. Priority is also given to investments in export-oriented industries. There are no laws or practices that discriminate against FDI. The "Turkish Cypriot Investment Development Agency (YAGA)" provides investment consultancy services, guidance on the legal framework, sector specific advice and information about investor incentives.
Limits on Foreign Control and Right to Private Ownership and Establishment
The ROC does not currently have a mandatory foreign investment screening mechanism that grants approval to FDI other than sector-specific licenses granted by relevant ministries. Invest Cyprus does grant approvals for investment under the film production incentive scheme. Invest Cyprus often refers projects for review to other agencies.
The following restrictions apply to investing in the ROC:
According to the "Registrar of Companies Office," all non-Turkish Cypriot ownership of construction companies is capped at 49 percent. Currently, the travel agency sector is closed to foreign investment. Registered foreign investors may buy property for investment purposes but are limited to one parcel or property. Foreign natural persons also have the option of forming private liability companies, and foreign investors can form mutual partnerships with one or more foreign or domestic investors.
About Industry and market trends northern cyprus
As the photovoltaic (PV) industry continues to evolve, advancements in Industry and market trends northern cyprus have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Industry and market trends northern cyprus for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Industry and market trends northern cyprus featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
