Cyprus has a record of successful economic performance reflected in rapid growth, full employment conditions, and external and internal stability, almost throughout the post-Independence period (from 1960). In terms of per capita income - currently estimated at US $12,687 (2003) - Cyprus is classified among the high-income European countries. The economy of Cyprus is 73.1 percent free, according to our 2007 assessment, which makes it the world's 20th freest economy. Its overall score is 0.2 percentage point lower than last year, partially reflecting new methodological detail. Cyprus is ranked 12th out of 41 countries in the European region, and its overall score is higher than the regional average. The first development plan (1962?66), designed to broaden the base of the economy and to raise the standard of living, resulted in an average annual real growth rate of 5.4%. The second development plan (1967?71) called for an annual growth rate of 7% in the GDP; actual growth during this period was nearly 8% annually. The third development plan (1972?76) envisaged an annual economic growth rate of 7.2%, but a drought in 1973 and the war in 1974 badly disrupted development programs. Physical destruction, a massive refugee problem, and a collapse of production, services, and exports made it impossible for Cyprus to reach the targets.
Until July 1974 the Cyprus economy was developing vigorously, particularly the agricultural sector which accounted for more than one third of the GDP. The tourist and light industry sectors were also growing. After the events of 1974 light industry was the engine of growth until the mid 1980's. By the late 1980's services replaced industry with tourism being the driving force of economic development. Since 1974 there has been a de facto par ...