The economy of Cyprus is characterized by an open character, rapid growth and overall healthy indicators. However, the small sizes of its domestic market, population and business units determine to certain extend the long-term economic outlook of the island.

From a structural point of view, the main characteristics of the Cyprus economy is its evolution from an exporter of minerals and agricultural products (in the ‘60’s and the first half of ‘70’s), and an exporter of manufactured consumer products (in the second half of ‘70’s), to an international tourist and services centre (in the ‘80’s and ‘90’s).

The structural changes of the Cyprus economy are also reflected in its long-term sectoral trends. The main observed tendency is the continuously growing importance of the tertiary sectors (services), at the expense of both the primary (agriculture, mining, quarrying) and the secondary (manufacturing and construction) sectors of the economy. The contribution of the manufacturing sector to GDP fell significantly over the last two decades, from 18% in 1980 to 12,5% in 1998, although during the last years the sector shows a recovery (the contribution to the GDP at current market prices, increased by 4,4% over 1997).

In the following table the population involved in each economic activity is presented:

Population involved per Economic Activity

Economic Activity (thousand)	1995	1996	1997	1998	1999	2000	2001
Agriculture, hunting and forestry	28.7	27.5	25.0	24.8	24.3	23.8	23.4
Fishing	1.1	1.1	1.2	1.3	1.3	1.4	1.3
Mining and quarrying	0.7	0.7	0.6	0.6	0.6	0.6	0.6
Manufacturing	44.0	42.2	40.8	39.6	38.0	36.7	37.2
Electricity, gas and water supply	1.4	1.4	1.4	1.5	1.5	1.5	1.5
Construction	27.7	27.3	26.9	26.1	26.2	26.5	26.9
Wholesale and retail trade; repairs	49.5	50.8	51.9	52.4	52.9	54.2	55.0
Hotels and restaurants	30.1	30.0	29.7	30.0	31.7	33.0	33.2
Transport, storage and communication	17.9	18.4	19.1	19.7	20.4	21.4	22.2

Financial intermediation	12.3	12.8	13.2	13.7	15.3	16.0	15.7
Real estate, renting and business activities	12.0	12.5	12.9	13.8	14.5	14.9	15.4
Public administration and defense; Compulsory social security	18.2	18.6	19.1	19.8	20.7	21.4	22.2
Education	13.3	14.2	14.9	15.2	15.7	16.1	17.0
Health and social work	10.3	10.7	11.0	11.2	11.5	12.0	12.3
Other community, social and personal services activities	12.1	12.3	12.4	12.5	13.2	14.2	14.5
Private households with employed persons	4.0	5.0	5.5	6.1	6.7	7.8	9.2
Extra territory, organ and bodies	3.1	3.1	3.0	2.9	2.8	2.8	2.8
	286.4	288.6	288.6	291.2	297.3	304.3	310.4