Despite political difficulties between the southern and northern parts of Cyprus, the government has grown its economy, increased tourism, and introduced business-friendly policies. These factors have contributed to a reduction in poverty on the island. This trend should hopefully continue in the next years. Although the economy has improved, Cyprus’ financial condition has been volatile in recent years, leading to an increase in poverty.
Since the expansion of the service sector, which provides citizens with job opportunities to raise their standard of living, The island’s economy has grown generally but has fluctuated. The island had a GDP of $2.15 billion in 1980. The country’s economy was estimated to be worth $21.65 billion in 2017. The island’s GDP has been declining since 2008, exacerbated by the country’s financial crisis in 2012-13, but has recently began to rise.
Despite the fact that GDP has increased in recent years, the rate of economic growth on the island has been inconsistent. Due to political instability and worldwide economic decline, the island’s GDP has dropped by as much as 2% in some years since its quicker development. The island, on the other hand, has recently maintained an economic growth rate of roughly 2%.
The island’s major economic sector is the service sector, with specialized jobs and tourism services continuing to grow. This industry makes for a large portion of the island’s GDP, accounting for an estimated 86.8%, whereas industry and agriculture account for 11.2 percent and 2.3 percent, respectively.
Due to the country’s financial and political problems, the island’s unemployment rate is relatively high, with an estimated 11.8 percent unemployment rate in 2017. While individuals’ economic opportunities have increased, this number has declined since the 2012-13 crisis, with the jobless rate in 2016 at 13%.
Poverty rates have progressively decreased as the country’s economy has grown. Despite lower poverty rates and low child poverty rates across the country, the danger of sliding into poverty increased following the financial crisis and now stands at 27.7%. Life expectancy in on the island has increased dramatically as a result of the country’s rapid development. People in the country lived an average of 69.6 years in 1960, increasing to 80.5 years in 2016.
Since increased development, school attendance and persistence to finish education on the island increased and maintained high levels. In 1974, just 64.63 percent of primary school students finished all of their courses, compared to 97.61 percent in 2016. This rise in academic persistence is most likely due to increased opportunities for skilled labor and lower poverty levels.
In addition to high primary school attendance, the island has a high adult literacy rate, with an overall literacy rate of 98.68 percent. The literacy rate among young adults aged 15 to 24 is even higher, at 99.82 percent, with male and female literacy rates of 99.80 percent and 99.84 percent, respectively.
Due to political and financial relationships between the friends of both regions, the North and South have considerably varied incomes per capita. In 2017, South Cyprus had a per capita income of roughly $24,976, while North Cyprus only had a per capita income of around $15,109.
North and South Cyprus’ economies are inextricably linked to Turkey’s and the European Union’s economic problems. Southern Cyprus was largely hit by the Eurozone crisis, whereas Northern Cyprus’ economic progress was hampered by Turkish financial difficulties. Because of the huge economic and political differences between the two countries, reunification would be the most stable and financially beneficial for both.
These top facts concerning poverty on the island highlight the government’s commitment to improving the economy and expanding opportunities for the people of the island. The country’s existing high standard of living has been improved; thanks to a strong focus on service and skilled industries, as well as industrial and agricultural expansion. Although the economy has grown tremendously, poverty still exists for some individuals, and with the possibility of reunification between the north and south, poverty on the island would continue to decline.