General State of the Economy

According to 2023 statistics, Cyprus, which ranks 169^th in the world in terms of the size of its territory, is home to around 1,3 million people. In terms of population density, the country occupies the 94^th place in the world. Cyprus is a presidential republic and a member of the European Union. The country is divided into 6 districts. The capital and the largest city is Nicosia, the official languages are Greek and Turkish [1,2,3].
Cyprus, officially the Republic of Cyprus, is an island nation in the Middle East in the eastern Mediterranean Sea. Cyprus is located south of the coast of Turkey, west of Syria and Lebanon, north of Egypt and east of Greece. The northeastern part of the island is governed by the self-proclaimed Turkish Republic of Northern Cyprus, recognized only by Turkey. The total length of the country's coastline is 648 km [3].

Cyprus / Republic of Cyprus
Capital: Nicosia	Density: 123.4/km²	Currency: Euro (€) (EUR)
Official languages: Greek, Turkish	Life expectancy at birth: 81.39 years	GDP (PPP): $49.857 billion (2023 est.)
National Day: 01 April	Area (land): 9,251 km²	GDP - per capita (PPP): $51,611 (2023 est.)
Population: 1,308,120 (2023 est.)	Coastline: 648 km	Internet country code: .cy

Source: [1,2,3,4,5]

Bridge Lovers Near Ayia Napa, Cyprus. Envato Elements. AZMRU8KF4N

The rating positions of Cyprus relative to other countries have been determined for an extensive list of economic, energy, innovative and educational indices, as well as for metrics reflecting the state of the environment. The economic indices include, for example, GDP per capita, annual average GDP growth, high-technology exports, and others. The list of energy indices includes proven reserves of oil, gas and coal, production-consumption ratio combined, and energy use, etc. Each of the indices has a ranked list of included member countries. Since the number of countries in each rating is different for each index, the positioning of the country of interest is displayed on a special chart, where the vertical axis is a uniform relative scale from 0 to 1, whereas the horizontal axis denominates the various indices and respective numbers relating to the descriptions given underneath.

Thus, in such a relative “0-1” diagram, the country’s position is marked with a dot in proportion to its location in the original rating list. If the country is among the leaders regarding the selected indicator, it will be marked close to 1 in the upper green zone on the relevant chart “0-1”, if the country is an outsider in the rating list, then it will be marked in the lower red zone of the chart “0-1”, etc.

Ranking position of Cyprus for list of economic indices:

Sources:
1. GDP (purchasing power parity), 2020 est. / The World Factbook/Library/Central Intelligence Agency *228
2. GDP - per capita (PPP), 2020 / The World Factbook/Library/Central Intelligence Agency *229
3. Inflation rate (consumer prices), 2019 est. / The World Factbook/Library/Central Intelligence Agency *228
4. Charges for the use of intellectual property, receipts (BoP, current US$), 2020 / International Monetary Fund, Balance of Payments Statistics Yearbook, and data files. / License: CC BY-4.0 *88
5. The Global Competitiveness Index 2019 / Rankings / Reports / World Economic Forum *141
6. High-technology exports (current US$) 2019-2020 / United Nations, Comtrade database through the WITS platform / License: CCBY-4.0 / Data *134
7. 2021 Index of Economic Freedom / International Economies / The Heritage Foundation *178
8. Reserves of foreign exchange and gold, 2017 est. / The World Factbook / Library / Central Intelligence Agency *195
9. Annual average GDP growth in %, for the last 10 years (2011-2020) / World Bank national accounts data, and OECD National Accounts data files / License: CC BY-4.0*206
10. Public debt (% of GDP), 2017 est. / The World Factbook / Library / Central Intelligence Agency (from smallest to largest) *210
* Total number of countries participating in ranking

Figure 1. Economic Indices of Cyprus

Cyprus has a market economy based on the provision of services, including tourism related activities. Of the indices presented, the country has the highest values for the Inflation Rate (0.89) and for the Index of Economic Freedom (0.81). The weakest parts of Cyprus economic indicators are public debt (0.09) and annual average GDP growth in % (0.19).

Energy Resources

Cyprus has no natural reserves of fossil fuels and relies on imported fuels and domestically generated renewable energy to meet most of its energy needs.

Table 1. Renewable energy resources of Cyprus

Resource/ explanations	Solar Potential (GHI)*	Wind Potential (50 м)*	Bio Potential (agricultural area)	Bio Potential (forest area)	Municipal Solid Waste
Value	4.6-5.5	4.0-5.5	14.5	18.7	633
Unit	kWh/m²/day	m/s	% of land area	% of land area	kg per capita
Year	2020	2020	2020	2020	2021
Source	[6]	[7]	[8]	[9]	[10]

*for most of the territory of the country

Renewable energy sources are the main natural energy resources available in Cyprus. They have experienced rapid growth in recent years. Solar energy is the dominant source, accounting for about 78% of the total installed renewable energy capacity in 2023 [11]. Cyprus has an average annual sunshine duration of over 300 days and therefore offers excellent conditions for the development of photovoltaics. In areas of high activity along the coast of Cyprus along the Mediterranean Sea, the most common solar GHI intensity is 5.2-5.5 kWh/m² per day.

PAFOS INTL. CYPRUS
Latitude: 34.72 Longitude: 32.49
Average speed: 3.81 m/s, Operational share: 64%

Average daily wind speed for 10 years of observations, m/s, 10 m above the ground

Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of wind resources

PAFOS INTL. CYPRUS
Latitude: 45.8, Longitude: 15.18

Average daily sky coverage over 10 years of observations, %

CLR - clear, SCT - scattered from 1/8 TO 4/8, BKN - broken from 5/8 TO 7/8, OVC - overcast, OBS - obscured, POB - partial obscuration

Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of solar resources

After solar energy, wind is the second most important renewable energy source with significant potential, especially offshore wind. In the northern part of the country along the Mediterranean coast, wind speeds reach 5.5 to 6.0 meters per second at a height of 50 meters.
In addition, there is also great potential for the development of anaerobic digestion in Cyprus to treat waste with high organic content.

Energy Balance

According to [12], in 2022 in Cyprus, the total production of primary energy was 0.003 quadrillion Btu, while consumption was at the level of 0.098 quadrillion Btu. Thus, the share of domestic production in primary energy consumption was about 3,06%. This makes Cyprus a country heavily dependent on energy imports.
According to the Statistical Review of World Energy 2022, primary energy consumption in Cyprus in 2021 amounted to 0.11 Exajoules [13]. Looking at total energy supply presented by International Energy Agency [14], in 2021 oil with 85% is the largest source of energy in Cyprus, followed by biofuels and waste (6.9%), wind and solar and other renewables (6.3), and coal (1.8). Domestic energy production is provided by 73% from renewable energy sources such as wind and solar and 27% from biofuels and waste.

Source: U.S. Energy Information Administration (Mar 2024) / www.eia.gov

Figure 2. The Production and consumption of fossil fuels in Cyprus (coal – left, gas – in the center, oil – right)

As can be seen from the graph above, natural gas is not part of the country's energy mix. Over the past 10 years, the volume of coal consumed has sharply decreased and was insignificant in 2021, but in 2022 it increased sharply to 58 thousand short tons. The country's main fossil fuel is oil, which is fully imported and whose consumption remained practically at the same level with slight fluctuations.

Source: U.S. Energy Information Administration (Mar 2024) / www.eia.gov

Figure 3. Electricity production in Cyprus

The largest source of electricity generation in Cyprus is fossil fuels, namely crude oil. Over the ten years shown in the graph above, there is a clear trend towards a gradual increase in the share of non-hydro renewable sources. In 2022, crude oil accounted for 83% and renewable sources for 17% of the electricity generated, while in 2010 this proportion was 98.7% vs. 1.3%, respectively.

Sources:
1. Crude oil proved reserves, 2021 / International Energy Statistic/Geography / U.S. Energy Information Administration (Nov 2021)*98
2. Natural gas proved reserves 2021 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *99
3. Total recoverable coal reserves 2019 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *81
4. Combination production-consumption for Crude oil 2018 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *219
5. Combination production-consumption for Natural gas 2019 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *123
6. Combination production-consumption for Coal 2019 / International Energy Statistic / Geography / U.S. Energy Information Administration (Nov 2021) *128
7. Electricity – from other renewable sources (% of total installed capacity), 2017 est. / The World Factbook / Library / Central Intelligence Agency *170
8. GDP per unit of energy use (PPP per unit of oil equivalent), 2020 *66
Primary energy consumption - BP Statistical Review of World Energy 2021/BP;GDP (purchasing power parity) - The World Factbook/Library/Central Intelligence Agency
9. Energy use (primary energy use of oil equivalent per capita) 2020 *127
Primary energy consumption – BP Statistical Review of World Energy 2021; Population - United Nations, Department of Economic and Social Affairs,
Population Division (2019). World Population Prospects 2019, custom data acquired via website. Retrieved 15 November 2021*66
10. The Global Energy Architecture Performance Index Report (EAPI) 2017 / Rankings / Reports / World Economic Forum
11. Electric power consumption (kWh per capita), 2016 *217
Electricity Consumption - The World Factbook / Library / Central Intelligence Agency; Population - United Nations, Department of Economic and Social Affairs,
Population Division (2019). World Population Prospects 2019, custom data acquired via website. Retrieved 15 November 2021
12. Combination of electricity production-consumption (kWh)/The World Factbook/Library/Central Intelligence Agency *216
* Total number of countries participating in ranking

Figure 4. Energy indices of Cyprus

As Cyprus has no significant reserves of crude oil, natural gas or coal, the first three positions remain unoccupied. This also applies to the natural gas production-consumption ratio indicator, as Cyprus does not consume natural gas. The coal production-consumption ratio (0.79) and GDP per unit of energy consumption (0.79) are the highest of those presented. In addition, the country is in a relatively favorable position in Electricity Consumption per capita (0.66) and Electricity - from other renewable sources (0.66). The lowest indicator of the Cyprus energy indices is the combined production-consumption of crude oil (0.32).

Energy Infrastructure

A territorial map showing the distribution of the largest fossil fuel sector projects in Cyprus is presented in Figure 5. As the country has no domestic production, the important infrastructural facilities in the country are the Cypriot ports that ensure the entry of raw materials into the country. One of them is the industrial port of Vassiliko in the southern part of Cyprus between Limassol and Larnaca. The oil terminal at Vassilikos is used for unloading fuel for the needs of the oil-powered plant located there.

Figure 5. Basic infrastructural facilities of the fossil fuel sector and electricity production in Cyprus(click on the map to view a PDF version)

There are a number of other oil terminals in the country, as well as two further large oil-fueled power stations – Dhekelia, located on the south-eastern coast in Larnaca and Moni on the south coast of Cyprus.

Figure 6. Renewable energy in Cyprus (click on the map to view a PDF version)

Sun energy occupies an important place in the country's energy mix. Solar energy, in particular photovoltaics, is developing quite rapidly, including in the private sector. The country already has a certain number of large and small solar parks, which are located throughout the country, with a higher concentration in the southern and central part. One of them is the 16.8 MW photovoltaic park in Agios Ioannis Malounta, in Nicosia.
Wind Energy account for about 32% of renewable electricity generation. One of the largest wind farms in Cyprus is the Orites wind farm with an installed capacity of 82 MW, located in the south-west of the country near Paphos on an area of 16 km². The Orites wind farm covers about 3.5% of Cyprus' electricity needs when fully operational [15].
The renewable energy sector in Cyprus has made significant progress over the last decade and according to the Integrated National Energy and Climate Plan [16], Cyprus' key renewable energy target for 2030 is to achieve at least 22.9% of renewables in final energy consumption. At the same time, in the electricity sector the share of renewables is expected to be increased to 30.3%. For the heating and cooling sector Cyprus plans to reach 39.4% and in the transportation sector this share is 14% by 2030.

Education and Innovation

The following chart shows Cyprus’s positions in terms of education and innovation:

Sources:
1. The Global Innovation Index 2021, Rankings / Knowledge / World Intellectual Property Organization / Cornell University, INSEAD, and WIPO (2021):
Energizing the World with Innovation. Ithaca, Fontainebleau, and Geneva *132
2. Patent Grants 2011-2020, resident & abroad / Statistical country profiles / World Intellectual Property Organization *185
3.Patents in Force 2020 / Statistical country profiles / World Intellectual Property Organization *109
4. QS World University Rankings 2022 *97
5. SCImago Country Rankings (1996-2020) / Country rankings / SCImago, (n.d.). SIR-SCImago Journal & Country Rank [Portal]. Retrieved 17 Nov 2021 *240
6. Internet users in 2018 / The World Factbook / Central Intelligence Agency *229
7. Internet users in 2018 (% Population) / The World Factbook / Central Intelligence Agency *229
8. Government expenditure on education, total (% of GDP), 2019 / United Nations Educational, Scientific, and Cultural Organization (UNESCO) Institute for Statistics.
License: CCBY-4.0 / Data as of September 2021*177
9. Research and development expenditure (% of GDP), 2018 / UNESCO Institute for Statistics. License: CCBY-4.0 / Data *119
10. Scientific and technical journal articles, 2018 / National Science Foundation, Science and Engineering Indicators. License: CCBY-4.0 / Data *197
* Total number of countries participating in ranking

Figure 8. The indices of education and innovation in Cyprus

Like many countries with relatively small population, Cyprus performs below the world average in terms of the absolute number of Internet users (0.39), but if we consider the number of users as a proportion of the total population, the country is performing very well (0.81). In addition, positives include government spending on education as a % of GDP (0.87) and The Global Innovation Index ranking (0.79). The weakest spots in the chart are Patents in Force 2020 (0.06) and QS World University Rankings (0.12).

Ecology and Environment Protection

Indicators related to environmental issues are presented in the following diagram.

Sources:
1. CO2 total emission by countries 2020 / European Commission / Joint Research Centre (JRC) / Emission Database for Global Atmospheric Research (EDGAR)*208
2. CO2 per capita emission 2020/European Commission/Joint Research Centre (JRC) / Emission Database for Global Atmospheric Research (EDGAR) *208
3. Forest area 2020 (% of land area) / The Global Forest Resources Assessment 2020 / Food and Agriculture Organization of the United Nations *234
4. Forest area change 2010-2020 (1000 ha/year) / The Global Forest Resources Assessment 2020 / Food and Agriculture Organization of the United Nations *234
5. The Environmental Performance Index (EPI) 2020 / Rankings / Yale Center for Environmental Law & Policy / Yale University *180
6. Annual freshwater withdrawals (m3 per capita), 2017 *179
Annual freshwater withdrawals, total (billion m3), 2017 – Food and Agriculture Organization, AQUASTAT data. /License: CC BY-4.0;
Population – United Nations, Department of Economic and Social Affairs, Population Division (2019).
World Population Prospects 2019, custom data acquired via website. Retrieved 15 November 2021
7. The National Footprint Accounts 2017 (Biocapacity Credit / Deficit) / Global Footprint Network *188
8. Methane emissions (kt of CO2 equivalent), 2018 / Data for up to 1990 are sourced from Carbon Dioxide Information Analysis Center, Environmental Sciences Division,
Oak Ridge National Laboratory, Tennessee, United States. Data from 1990 are CAIT data: Climate Watch. 2020. GHG Emissions. Washington, DC: World Resources Institute.
Available at: License : Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) *191
9. The Climate Change Performance Index (CCPI) 2022 / Overall Results / Jan Burck, Thea Uhlich, Christoph Bals, Niklas Höhne, Leonardo Nascimento /
Germanwatch, NewClimate Institute & Climate Action Network *60
* Total number of countries participating in ranking

Figure 9. Environmental Indices of Cyprus

Half of the indices characterizing the country's position in various international rankings related to ecology and environmental protection are below the world average. Cyprus ranks lowest in The National Footprint Accounts (0.12), CO2 emissions per capita (0.27) and The Climate Change Performance Index (0.36). Cyprus has rich biodiversity, but the forest area as a % of total land area is below the world average (0.38). On the other hand, there is a positive trend of stability in forest area in recent years (0.55). The Environmental Performance Index (0.84) and Methane emissions (0.83) are among the best indicators of Cyprus.

References

[1] List of sovereign states and dependencies by area / Wikipedia / en.wikipedia.org/wiki/List_of_sovereign_states_and_dependencies_by_area
[2] List of countries and dependencies by population density / Wikipedia / en.wikipedia.org/wiki/List_of_countries_and_dependencies_by_population_density
[3] Cyprus / The world factbook / Library / Central Intelligence Agency / www.cia.gov
[4] GDP, PPP (constant 2011 international $) / World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[5] GDP per capita, PPP (current international $) / World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[6] Solar resource data obtained from the Global Solar Atlas, owned by the World Bank Group and provided by Solargis / Global Solar Atlas / globalsolaratlas.info
[7] Wind Map / Global Wind Atlas 2.0, a free, web-based application developed, owned and operated by the Technical University of Denmark (DTU) in partnership with the World Bank Group, utilizing data provided by Vortex, with funding provided by the Energy Sector Management Assistance Program (ESMAP). For additional information: globalwindatlas.info
[8] Agricultural land (% of land area) /Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[9] Forest area (% of land area) /Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[10] Municipal waste statistics Updated / Statistics Explained / Eurostat / https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Municipal_waste_statistics
[11] Renewable energy statistics 2023 / IRENA / https://www.irena.org/Publications/2023/Jul/Renewable-energy-statistics-2023
[12] International Energy Statistic / Geography / U.S. Energy Information Administration / www.eia.gov/beta/international/
[13] BP Statistical Review of World Energy 2020-2022 (PDF) / BP / www.bp.com
[14] Energy mix of Cyprus / EIA / https://www.iea.org/countries/cyprus/energy-mix
[15] Orites Wind Farm / Ellinas Energy / https://www.ellinasenergy.com/orites-wind-farm/
[16] Integrated National Energy and Climate Plan / https://faolex.fao.org/docs/pdf/cyp205459.pdf

The sources of charts and curves are specified under the images.

For more information about the energy industry in Cyprus see here

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