Cyprus and the International Economy

Cyprus has an increasingly open economy, and a study of its external economic relations is to a considerable extent a profile of its modern development. Living standards are now higher than in mainland Greece despite the partition of the island following the Turkish invasion of 1974. This is partly a consequence of the growth of tourism, though offshore companies have also made a significant contribution. Manufactured exports are now more important than traditional agricultural produce, and Cyprus has a customs union agreement with the European Community. Yet this economic success brings its own worries, especially over environmental deterioration. The question of partition also remains unresolved.