The economy of Cyprus can generally be characterised as small, open and dynamic, with services constituting its engine power. Since the accession of the country to the European Union on 1st of May 2004, its economy has undergone significant economic and structural reforms that have transformed the economic landscape. Ιnterest rates have been liberalised, while price controls and investment restrictions have been lifted with a full liberalisation of the foreign direct investment regime in Cyprus. Moreover, other wide-ranging structural reforms have been promoted, covering the areas of competition, the financial sector and the enterprise sector.
The services sector is the fastest growing area and accounted for about 80,5% of GDP in 2011. This development reflects the gradual restructuring of the Cypriot economy from an exporter of minerals and agricultural products in the period 1961-73 and an exporter of manufactured goods in the latter part of the 1970s and the early part of the 80s, to an international tourist, business and services centre during the 1980s, 1990s and the 2000s. The secondary sector (manufacturing) accounted for around 17,1% of GDP in 2011. The primary sector (agriculture and fishing) is continuously shrinking and only reached 2,4% of GDP in 2011.