Location and Area
Cyprus is a small island of 9.251 sq kms (3.572 sq miles). It is strategically situated in the far eastern end of the Mediterranean at the crossroads of Europe, Africa and Asia, and in close proximity to the busy trade routes linking Europe with the Middle East, Russia, Central Asia and the Far East.

Economy
Whereas the political problem remains unresolved the economy, based on the free enterprise system, has made a remarkable recovery, exceeding the pre-invasion levels. Cyprus is today a major tourist destination, a services centre –mainly banking and shipping – and telecommunications node. It has a standard of living that is even higher than some European Union member-states and the performance of the economy compares favourably with that of most EU countries. According to the World Development Indicators 1999 published by the World Bank, Cyprus holds 19th place worldwide in terms of per capita income. The average annual rate of growth in the past five years was about 4,2%, while inflation stood at 2,6% and unemployment at 3,3% over that period.

International Business and Shipping
Cyprus has developed into an international banking and business centre with 26 foreign banks, two administered banking units and over 1.000 fully-fledged overseas companies operating on the island. It has also become an important shipping centre and currently ranks sixth in the world as a maritime nation.

The central geographical location of the island, British modeled legal system, availability of wide-ranging professional services, excellent infrastructural facilities, advanced telecommunications network and widespread knowledge of English are some of the factors that have helped create an ideal business environment for foreign firms.

Transshipment
On account of its geographical location Cyprus has developed into an important transshipment centre with a large volume of re-exports going to the emerging markets of the Middle East and Central Europe.

High Technology Industry
The Government is currently promoting the establishment of high technology industry through the creation of incubators and a research and technological development centre.

Imports
Chief imports are raw materials, consumer and capital goods, transport equipment and fuels. In 2001, 51% of total imports come from the EU, mainly Greece (8,9 %), the UK (8,8%), Italy (8,8%), Germany (6,8%) and France (5%). The USA accounted for 10% of imports and Japan 6 %.

Exports
Major exports are clothing, footwear, pharmaceutical products, cement, cigarettes, furniture, paper goods, wines, potatoes and citrus fruit. In 2001, 49,5% of domestic exports went to EU countries, mainly to the UK (16,4%), Greece (10,7%) and Germany (6%). Also 22,5 % of exports went to Arab and 7,8% to Eastern European countries.