A former British colony, Cyprus became independent in 1960 following years of resistance to British rule. Tensions between the Greek Cypriot majority and Turkish Cypriot minority came to a head in December 1963, when violence broke out in the capital of Nicosia. Despite the deployment of UN peacekeepers in 1964, sporadic intercommunal violence continued forcing most Turkish Cypriots into enclaves throughout the island. In 1974, a Greek Government-sponsored attempt to seize control of Cyprus was met by military intervention from Turkey, which soon controlled more than a third of the island. In 1983, the Turkish Cypriot-occupied area declared itself the "Turkish Republic of Northern Cyprus" ("TRNC"), but it is recognized only by Turkey. The election of a new Cypriot president in 2008 served as the impetus for the UN to encourage both the Greek Cypriot and Turkish Cypriot communities to reopen unification negotiations. In September 2008, the leaders of the two communities began negotiations under UN auspices aimed at reuniting the divided island. The talks are ongoing and the leaders continue to meet regularly. The entire island entered the EU on 1 May 2004, although the EU acquis - the body of common rights and obligations - applies only to the areas under the internationally recognized government, and is suspended in the areas administered by Turkish Cypriots. However, individual Turkish Cypriots able to document their eligibility for Republic of Cyprus citizenship legally enjoy the same rights accorded to other citizens of European Union states.

Middle East, island in the Mediterranean Sea, south of Turkey

about 0.6 times the size of Connecticut

temperate; Mediterranean with hot, dry summers and cool winters

central plain with mountains to north and south; scattered but significant plains along southern coast

copper, pyrites, asbestos, gypsum, timber, salt, marble, clay earth pigment

moderate earthquake activity; droughts

water resource problems (no natural reservoir catchments, seasonal disparity in rainfall, sea water intrusion to island's largest aquifer, increased salination in the north); water pollution from sewage and industrial wastes; coastal degradation; loss of wildlife habitats from urbanization

the third largest island in the Mediterranean Sea (after Sicily and Sardinia)

Greek 77%, Turkish 18%, other 5% (2001)

Greek (official), Turkish (official), English

Greek Orthodox 78%, Muslim 18%, other (includes Maronite and Armenian Apostolic) 4%

1,138,071 (July 2012 est.)

11.44 births/1,000 population (2012 est.)

6.48 deaths/1,000 population (July 2012 est.)

10.75 migrant(s)/1,000 population (2012 est.)

NICOSIA (capital) 240,000 (2009)

10 deaths/100,000 live births (2010)

1.45 children born/woman (2012 est.)

2.3 physicians/1,000 population (2006)

3.72 beds/1,000 population (2006)

fewer than 1,000 (2007 est.)

6 districts; Famagusta, Kyrenia, Larnaca, Limassol, Nicosia, Paphos; note - Turkish Cypriot area's administrative divisions include Kyrenia, all but a small part of Famagusta, and small parts of Nicosia (Lefkosia) and Larnaca

16 August 1960 (from the UK); note - Turkish Cypriots proclaimed self-rule on 13 February 1975 and independence in 1983, but these proclamations are only recognized by Turkey

Independence Day, 1 October (1960); note - Turkish Cypriots celebrate 15 November (1983) as "Independence Day"

mixed legal system of English common law and civil law with Greek Orthodox religious law influence

accepts compulsory ICJ jurisdiction with reservations; accepts ICCt jurisdiction

18 years of age; universal

unicameral - area under government control: House of Representatives or Vouli Antiprosopon (80 seats; 56 assigned to the Greek Cypriots, 24 to Turkish Cypriots; note - only those assigned to Greek Cypriots are filled; members are elected by popular vote to serve five-year terms); area administered by Turkish Cypriots: Assembly of the Republic or Cumhuriyet Meclisi (50 seats; members elected by popular vote to serve five-year terms)

Supreme Court (judges are appointed jointly by the president and vice president); subordinate courts

Confederation of Cypriot Workers or SEK (pro-West); Confederation of Revolutionary Labor Unions or Dev-Is; Federation of Turkish Cypriot Labor Unions or Turk-Sen; Pan-Cyprian Labor Federation or PEO (Communist controlled)

Australia Group, C, CE, EBRD, EIB, EMU, EU, FAO, IAEA, IBRD, ICAO, ICC, IDA, IFAD, IFC, IFRCS (observer), IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, NAM, NSG, OAS (observer), OIF, OPCW, OSCE, PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNIFIL, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO

white with a copper-colored silhouette of the island (the name Cyprus is derived from the Greek word for copper) above two green crossed olive branches in the center of the flag; the branches symbolize the hope for peace and reconciliation between the Greek and Turkish communities

Cypriot mouflon (wild sheep); white dove

The area of the Republic of Cyprus under government control has a market economy dominated by the service sector, which accounts for four-fifths of GDP. Tourism, financial services, and real estate are the most important sectors. Erratic growth rates over the past decade reflect the economy's reliance on tourism, the profitability of which often fluctuates with political instability in the region and economic conditions in Western Europe. Nevertheless, the economy in the area under government control has grown at a rate well above the EU average since 2000. Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and adopted the euro as its national currency on 1 January 2008. An aggressive austerity program in the preceding years, aimed at paving the way for the euro, helped turn a soaring fiscal deficit (6.3% in 2003) into a surplus of 1.2% in 2008, and reduced inflation to 4.7%. This prosperity came under pressure in 2009, as construction and tourism slowed in the face of reduced foreign demand triggered by the ongoing global financial crisis. Although Cyprus lagged behind its EU peers in showing signs of stress from the global crisis, the economy tipped into recession in 2009, contracting by 1.7%, and has been slow to bounce back since, posting an anemic growth rate of 1.0% in 2010. A massive munitions blast in July 2011 at a Cypriot naval base triggered country-wide energy outages, a collapse of the governing coalition, and a cabinet shuffle intensifying Cyprus's economic problems. The economy experienced no economic growth in 2011. Serious Cypriot financial sector problems surfaced in early 2011 as the Greek fiscal crisis and euro zone debt crisis deepened. Two of Cyprus's biggest banks are among the largest holders of Greek bonds in Europe and have a substantial presence in Greece through bank branches and subsidiaries. A liquidity squeeze is choking the financial sector and the real economy as many global investors doubt the Cypriot economy can weather the EU crisis. Cyprus's borrowing costs have risen steadily because of its exposure to Greek debt. The budget deficit is on the rise and reached 7.4% of GDP in 2011, a violation of the EU's budget deficit criteria - no more than 3% of GDP. In response to the country's deteriorating finances and serious risk of contagion from the Greek debt crisis, Nicosia is promising to implement measures to cut the cost of the state payroll, curb tax evasion, and revamp social benefits. However, it has been slow to act, lacking a consensus in parliament and among the social partners for its proposed measures.

$24.03 billion (2011 est.)

$23.91 billion (2010 est.)

$23.64 billion (2009 est.)

$24.95 billion (2011 est.)

16.7% of GDP (2011 est.)

41.5% of GDP (2011 est.)

-6.5% of GDP (2011 est.)

65.8% of GDP (2011 est.)

61.5% of GDP (2010 est.)

1.75% (31 December 2011)

1.75% (31 December 2010)

7.5% (31 December 2011 est.)

6.815% (31 December 2010 est.)

$14.73 billion (31 December 2011 est.)

$4.622 billion (31 December 2010 est.)

$56.25 billion (31 December 2011 est.)

$52.97 billion (31 December 2010 est.)

$54.88 billion (31 December 2011 est.)

$53.92 billion (31 December 2010 est.)

$2.853 billion (31 December 2011)

$6.834 billion (31 December 2010)

$4.993 billion (31 December 2009)

citrus, vegetables, barley, grapes, olives, vegetables; poultry, pork, lamb; dairy, cheese

tourism, food and beverage processing, cement and gypsum production, ship repair and refurbishment, textiles, light chemicals, metal products, wood, paper, stone and clay products

-$2.635 billion (2011 est.)

-$2.803 billion (2010 est.)

$2.165 billion (2011 est.)

$1.518 billion (2010 est.)

citrus, potatoes, pharmaceuticals, cement, clothing

Greece 26.2%, UK 10.2%, Germany 5.6% (2011)

$8.034 billion (2011 est.)

$8.032 billion (2010 est.)

consumer goods, petroleum and lubricants, machinery, transport equipment

Greece 21.5%, Israel 10.4%, UK 9.2%, Italy 8.3%, Germany 8.1%, France 5.7%, China 4.8%, Netherlands 4.6% (2011)

$1.207 billion (31 December 2011 est.)

$NA $35.87 billion (31 December 2011 est.)

$30.77 billion (31 December 2010 est.)

$28.2 billion (31 December 2011 est.)

$26.1 billion (31 December 2010 est.)

$13.41 billion (31 December 2011 est.)

$12.41 billion (31 December 2010 est.)

euros (EUR) per US dollar -

4.887 billion kWh (2009 est.)

4.698 billion kWh (2009 est.)

1.392 million kW (2009 est.)

99.7% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

0.3% of total installed capacity (2009 est.)

0 bbl/day (2011 est.)

0 bbl/day (2009 est.)

0 bbl (1 January 2012 est.)

0 bbl/day (2008 est.)

58,430 bbl/day (2011 est.)

0 bbl/day (2008 est.)

60,310 bbl/day (2008 est.)

0 cu m (1 January 2012 est.)

9.257 million Mt (2010 est.)

area under government control: 405,000 (2011); area administered by Turkish Cypriots: 86,228 (2002)

area under government control: 1.09 million (2011); area administered by Turkish Cypriots: 147,522 (2002)

mixture of state and privately-run TV and radio services; the public broadcaster operates 2 TV channels and 4 radio stations; 6 private TV broadcasters, satellite and cable TV services including telecasts from Greece and Turkey, and a number of private radio stations are available; in areas administered by Turkish Cypriots, there are 2 public TV stations, 4 public radio stations, and privately-owned TV and radio broadcast stations (2007)

12,321 km under government control (includes 257 km of expressways),

2,350 km administered by Turkish Cypriots (2008)

area under government control: Larnaca, Limassol, Vasilikos; area administered by Turkish Cypriots: Famagusta, Kyrenia

Republic of Cyprus: Greek Cypriot National Guard (Ethniki Forea, EF; includes naval and air elements); Northern Cyprus: Turkish Cypriot Security Force (GKK) (2009)

Greek Cypriot National Guard (GCNG): 18-50 years of age for compulsory military service for all Greek Cypriot males; 17 years of age for voluntary service; women may volunteer for a 3-year term; length of service is 25 months (2009)

3.8% of GDP (2005 est.) (U)

hostilities in 1974 divided the island into two de facto autonomous entities, the internationally recognized Cypriot Government and a Turkish-Cypriot community (north Cyprus); the 1,000-strong UN Peacekeeping Force in Cyprus (UNFICYP) has served in Cyprus since 1964 and maintains the buffer zone between north and south; on 1 May 2004, Cyprus entered the European Union still divided, with the EU's body of legislation and standards (acquis communitaire) suspended in the north; Turkey protests Cypriot Government creating hydrocarbon blocks and maritime boundary with Lebanon in March 2007

minor transit point for heroin and hashish via air routes and container traffic to Europe, especially from Lebanon and Turkey; some cocaine transits as well; despite a strengthening of anti-money-laundering legislation, remains vulnerable to money laundering; reporting of suspicious transactions in offshore sector remains weak (2008)