The Greek Cypriot economy is strong and prosperous, but susceptible to external shocks.  Erratic growth rates over the past decade reflect the economy's vulnerability to swings in tourist arrivals, caused by political instability in the region and fluctuations in economic conditions in Western Europe.

Cypriots enjoy a high standard of living - one of the highest in the area and the country's main industry, tourism, provides employment for a sizeable proportion of the population throughout the year.

Tourism in Cyprus began to play a significant role in the general economic development of the country after the island won its independence in 1960.  A few years later the island became one of the major tourist centres of the Mediterranean because of its geographical position, natural beauty, cultural heritage, and its excellent tourist facilities.  Now the island receives more than a million and a half tourists every year.

As an agricultural country Cyprus bolsters her economy with the significant production of potatoes, citrus, fresh vegetables etc.  The importance of manufacturing can be seen in the exportation of Cyprus clothing, footwear, wine and foodstuffs.

In May 2004, Cyprus became a member of the European Union.  This has led to increased investment in the island, particularly from other EU nationals buying property and this is likely to continue to boost the economy further.