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Cyprus has a modern, free-market, service-based economy, where in conjunction with its effective transparent regulatory and legal framework, offers international investors and domestic businesses confidence to invest grow and prosper.
According to the World Bank and the World Economic Forum for 2013 Cyprus is 39th out of 189 countries for Ease of Doing Business and 27th out of 145 countries for Best Countries for Business.
The main sector of Cyprus economy (80,5%-share in creating GDP) is the constantly developing service sector: (tourist, legal, economic consulting services, services of shipping industry, of international trade, real estate market, telecommunication services etc.). A smaller role falls to the traditional sectors. The share of industrial production (food processing, production of tobacco goods, clothing, metal, pharmaceutical, chemical) accounts for 11% of the GDP, and the share of agriculture (potatoes, vegetables, citrus fruit, grapes and olives cultivation) only 4% of the GDP.
The global economic crisis has interrupted a 35-year run of steady and continuous growth of Cyprus economy. The tough conditions of Cyprus’ financial assistance package from the European Commission, the European Central Bank and the International Monetary Fund escalated the financial crisis in March 2013, but the government has moved swiftly to push through a number of initiatives to boost the economy and put in place a series of measures in order to bring down public expenditure to more sustainable levels, modernize legislation, promote development projects, attract foreign investors through introducing tax incentives and speeding up licencing procedures.
The key and most promising sectors are: energy, tourism, education, research and development, real estate.
According to the provisional data the Cypriot economy decreased in 2013 by 5,5%. The estimations says about the further decrease in 2014 by 4,8%, but it should grow again in 2015 by 0,9% and n 2016 by about 2%.
In November 2013 Cyprus economy for the first time since 2012 improved its ratings after 3 successful estimations of implementation of the Memorandum of Understanding program by Troika. According to the international rating house Moody’s Cyprus economy recorded better performance than expected.