Economy of Northern Cyprus

{{main article|Embargo against Northern Cyprus}}

Because of its international status and the embargo on its ports, the TRNC is heavily dependent on Turkish military and economic support.{{cite web |url=http://news.independent.co.uk/education/higher/article3136333.ece |title=Universities: Little accord on the island - Higher, Education - The Independent |access-date=2008-12-29 |archive-url=https://web.archive.org/web/20080111115220/http://news.independent.co.uk/education/higher/article3136333.ece |archive-date=2008-01-11 |url-status=dead }} All TRNC exports and imports have to take place via Turkey, unless they are produced locally, from materials sourced in the area (or imported via one of the island's recognised ports) when they may be exported via one of the legal ports.

The continuing Cyprus problem adversely affects the economic development of the TRNC. The Republic of Cyprus, as the internationally recognised authority, has declared airports and ports in the area not under its effective control, closed. All UN and EU member countries respect the closure of those ports and airports according to the declaration of the Republic of Cyprus. The Turkish community argues that the Republic of Cyprus has used its international standing to handicap economic relations between TRNC and the rest of the world.{{cite journal|doi=10.1080/10242694.2013.763628 | volume=25 | title=Foreign aid fungibility and military spending: The case of North Cyprus | journal=Defence and Peace Economics | date=2014 | pages=499–508 | last1=Feridun | first1=Mete | issue=5 }}{{cite journal|doi=10.1080/10242694.2011.562370 | volume=22 | title=The Impact of Military Spending on Economic Growth: The Case of North Cyprus | journal=Defence and Peace Economics | date=2011 | pages=555–562 | last1=Feridun | first1=Mete | last2=Sawhney | first2=Bansi | last3=Shahbaz | first3=Muhammad | issue=5 }}

There are three-year-long programs of financial and economical cooperation between Turkey and Northern Cyprus.{{cite web|title=Türkiye'den KKTC'ye 2015'in ilk üç ayında ne kadar yardım gitti?|url=http://t24.com.tr/haber/turkiyeden-kktcye-2015in-ilk-uc-ayinda-ne-kadar-yardim-gitti,294995|publisher=T24|access-date=28 July 2015|language=tr}} In 2013, Turkey transferred 430 million Turkish liras to the Turkish Cypriot budget, comprising 5.7% of the GNP, and one-seventh of the state budget. The aid from Turkey had decreased from 7.1% of the budget in 2004. In addition, 2013 saw a budget deficit amounting to 7.2% of the GNP, and a credit amounting to 6.6% of the GNP was obtained from Turkey. Between 2004 and 2013, Northern Cyprus constantly had a budget deficit, peaking at 14.0% of the GNP in 2009. This prompted constant borrowing from Turkey, reaching a maximum of 12.2% of the GNP in 2009.{{cite book|title=Economic and Social Indicators 2013|publisher=TRNC State Planning Organization|pages=21–23}} In December 2014, Northern Cyprus had a total debt of 23 million Turkish liras, 7.5 million liras being external debt to Turkey. This amounted to 1.5 times the GDP.{{cite web|title=Maliye Bakanı Mungan bütçeyi sundu|url=http://www.yeniduzen.com/Haberler/haberler/maliye-bakani-mungan-butceyi-sundu/45095|publisher=Yeni Düzen|access-date=28 July 2015|language=tr|date=8 December 2014}}

File:TRNC Ministry of Finance.jpg]]

Despite the constraints imposed by the lack of international recognition, the TRNC economy turned in an impressive performance. The nominal GDP growth rates of the TRNC economy in 2001-2005 were 5.4%, 6.9%, 11.4%, 15.4% and 10.6%, respectively.[http://www.tepav.org.tr/tur/admin/dosyabul/upload/oxfordbgdoc.pdf Cyprus after Accession: Thinking Outside the Box – Background Documents], University of Oxford, European Studies Centre, Workshop on Cyprus 10–11 March 2006[http://www.cyprus-properties.com/cyprus/general.htm General information about North Cyprus: Economy], web site of Unistar Investments Ltd., Bellapais, North Cyprus The real GDP growth rate in 2007 is estimated at 2%. This growth has been buoyed by the relative stability of the Turkish Lira and a boom in the education and construction sectors.

The growth was further buoyed by the arrival of northern European home buyers, investing in holiday villas. Over 10,000 British people, including expatriates, purchased holiday villas in Northern Cyprus to live in permanently, or to visit during the summer months. These settlers generated over $1 billion between 2003 and 2007.

File:Nicosia Collage.png

Between 2002 and 2007, Gross National Product per capita more than tripled (in current US dollars):[http://www.devplan.org/Frame-eng.html Economic and Social Indicators 1977-2007] {{Webarchive|url=https://web.archive.org/web/20131108124553/http://www.devplan.org/Frame-eng.html |date=2013-11-08 }}, TRNC State Planning Organization, February 2008

• US$4,409 (2002)
• US$5,949 (2003)
• US$8,095 (2004)
• US$10,567 (2005)
• US$11,837 (2006)
• US$14,047 (2007, provisional)

Studies by the World Bank show that the per capita GDP in TRNC grew to 76% of the per capita GDP in the Republic of Cyprus in PPP-adjusted terms in 2004 (US$22,300 for the Republic of Cyprus and US$16,900 for the TRNC). Official estimates for the GDP per capita in current US dollars are US$8,095 in 2004 and US$11,837 in 2006.

File:Lemons North Cyprus.jpg

File:Famagusta 01-2017 img28 sea port.jpg

File:LTK Bank Headquarters North Nicosia.jpg

Although the TRNC economy has developed in recent years, it is still dependent on monetary transfers from the Turkish government. Under a July 2006 agreement, Ankara is to provide Northern Cyprus with an economic aid in the amount of $1.3 billion over three years (2006–2008). This is a continuation of ongoing policy under which Turkish government allocates around $400 million annually from its budget to help raise the living standards of the Turkish Cypriots.[http://arama.hurriyet.com.tr/arsivnews.aspx?id=-603112 Turkey, N. Cyprus sign economic development deal] {{Webarchive|url=https://web.archive.org/web/20090125195451/http://arama.hurriyet.com.tr/arsivnews.aspx?id=-603112 |date=2009-01-25 }}, Hurriyet Turkish Daily News, 4 May 2007.Feridun, Mete (2014) Foreign aid fungibility and military spending: the case of North Cyprus. Defence and Peace Economics, 25 (5). pp. 499-508. ISSN 1024-2694 (Print), 1476-8267 (Online) (doi:10.1080/10242694.2013.763628)Feridun, Mete, Sawhney, Bansi and Shahbaz, Muhammad (2011) The impact of military spending on economic growth: the case of North Cyprus. Defence and Peace Economics, 22 (5). pp. 555-562. ISSN 1024-2694 (print), 1476-8267 (online) (doi:10.1080/10242694.2011.562370)

{{main article|Tourism in Northern Cyprus}}

The tourism sector of Northern Cyprus has seen high levels of constant growth. 1.23 million tourists visited Northern Cyprus in 2013, 920,000 of these being from Turkey. The number of tourists had doubled since 2006, which saw 570,000 tourists. The revenue from tourism was at $616 million, up from $390 million in 2009 and $288 million in 2004.{{cite book|title=Economic and Social Indicators 2013|publisher=TRNC State Planning Organization|pages=2–3}}

The number of tourist beds increased to 17,000 in 2011.[http://www.zaman.com.tr/yazar.do?yazino=1175178&title=isadamlari-kuzey-kibrisa-cikarma-yapti Zaman Newspaper 01 Sept 2011] {{webarchive |url=https://web.archive.org/web/20131107113550/http://www.zaman.com.tr/yazar.do?yazino=1175178&title=isadamlari-kuzey-kibrisa-cikarma-yapti |date=November 7, 2013 }}

The Banking sector grew 114% from 2006 to 2011. TRNC Development Bank is a member of the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP).[http://www.adfiap.org/members/members-map ADFIAP] {{Webarchive|url=https://web.archive.org/web/20210119123744/https://www.adfiap.org/members/members-map/ |date=2021-01-19 }} Northern Cyprus DB is a member

WTO statistically counts products from Northern Cyprus as products from Turkey.{{cite web|title=Moving Borders: Russia's Creative Entry into the World Trade Organization (WTO)|url=https://journals.sagepub.com/doi/10.1177/0304375414566152|publisher=Daniel Warner, Alternatives: Global, Local, Political, 2014, Vol. 39(2) 90-107, page105|doi=10.1177/0304375414566152 |access-date=25 March 2020}}

In 2014, the exports of Northern Cyprus were at $130 million, with an increase of 11.9% from 2013, and the imports were at $1.51 billion, with an increase of 3.6% from 2013. The main trading partner is Turkey, as of 2014, 64.7% of Turkish Cypriot imports are from and 58.5% of Turkish Cypriot exports are to Turkey. Middle Eastern countries are the destination of 30.3% of Turkish Cypriot exports and their share in the exports of Northern Cyprus has greatly increased, being at only 17.8% at 2006. The share of exports to the European Union has greatly decreased from 15.0% in 2006 to 6.2% in 2014, while imports from the European Union were 15.5% of all imports.

The agricultural sector is the source of the vast majority of exported goods. In 2013, 32.4% of exported products were raw agricultural products and 50.8% were processed agricultural products. 8.7% of the exports was minerals, 3.0% clothing and 5.1% other industrial products. Raw citrus by itself constituted 19.1% of all exports.{{cite book|title=Economic and Social Indicators 2013|publisher=TRNC State Planning Organization|page=27}} The most important exported products, in order of the revenue they produce, are dairy products, citrus, rakı, scrap, citrus concentrate, chicken, and potatoes.{{cite web|title=Dış Ticaret|url=http://www.ekonomi.gov.tr/portal/faces/home/disIliskiler/ulkeler/ulke-detay/KKTC/html-viewer-ulkeler?contentId=UCM%23dDocName%3AEK-160435&contentTitle=D%C4%B1%C5%9F%20Ticaret&_afrLoop=422633804713877&_afrWindowMode=0&_afrWindowId=13r2td1z2c_219#!%40%40%3F_afrWindowId%3D13r2td1z2c_219%26_afrLoop%3D422633804713877%26contentId%3DUCM%2523dDocName%253AEK-160435%26contentTitle%3DD%25C4%25B1%25C5%259F%2BTicaret%26_afrWindowMode%3D0%26_adf.ctrl-state%3D13r2td1z2c_249|publisher=Turkish Ministry of Economy|access-date=29 July 2015|language=tr}}

Below is a table showing the distribution of exports of Northern Cyprus by goods:

{{Reflist}}

• {{cite news |url=https://euobserver.com/opinion/153749 |title=Could north Cyprus unilaterally join euro to escape Turkey's lira? |last=Feridun |first=Mete |work=euobserver |date=8 December 2021}}

{{Northern Cyprus topics}}

{{Economy of Europe}}

{{DEFAULTSORT:Economy Of Northern Cyprus}}