Economy

by admin on December 12, 2019

Tourism is the main area in the economy of North Cyprus. Approximately 70% of the state’s gross domestic product consists of activities related to tourism services, trade, and casinos. Prices in the TRNC are lower than in the Southern part, so it is quite possible to buy real estate here and live. However, due to the fact that the Turkish Republic of Northern Cyprus is accepted by only a few countries, the world community has set a lot of economic sanctions for it.

Despite this, in the economy of North Cyprus, unlike the southern part of the island, in recent years there has been a steady growth, about 3.5% annually. The reasons lie in the economic support of Turkey, as well as the open policy of the government.

Attracting features of North Cyprus economy are low taxes, price loyalty, attracting large investments, developed tourism, the availability of obtaining visas. The Government of North Cyprus supports the freedom of foreign trade, and also allows residents to keep money in foreign currency.

Nevertheless, there are also negative aspects in the economy of the TRNC, among which there are insufficient investments, a shortage of qualified and experienced personnel. Because The Turkish lira is a circulating currency unit in the economy of the TRNC, hyperinflation was a big problem for a long time. The most significant partner of North Cyprus in foreign trade is Turkey. About 50% of import come from there and the same go for export. Another major partner is the European Union. However, in 1994, the European Court decided that the import of goods from Cyprus to Europe can only be carried out by the Republic of Cyprus, that is, the southern part of the island. This led to a decrease in the export of TRNC.