Larnaca, Cyprus » City Info » Economy last update: 04.08.2008 (2 months ago)

Larnaca offers strong support to economy of Cyprus. This important tourist resort has commercial port and an international airport. Also, there is an oil refinery, which lies to the north of the city. The city is a home for most of the industries of island. As Larnaca has plenty of tourist spots with availability of restaurants, luxurious beach hotels, good transportation service, it is emerging as popular tourist destination in Europe.

As Larnaca is one of the most important cities of Cyprus, the economy of Larnaca cannot separate out from economical status of Cyprus. After being part of European union, Cyprus has adopted Euro as a national currency recently on 1 January 2008. Also Cyprus Island has achieved the third highest position in terms of per capita GDP in the European Union after Luxembourg and Malta.

The economy of island is mostly dependable on services sector, trade, tourism, education, agriculture and light manufacturing sectors. But it is affected by some factors like lack of investments, high freight costs and shortage of skilled labours. The main industries include import-export of agricultural products, poultry business, fishing and manufacturing of clothing and footwear. Some industrial sectors like processed foods and beverages, paper, chemicals, textiles, metal products, and refined petroleum also provide strong support to country’s economy.

Now a days, tourism business also plays a vital role to contribute the economy of Cyprus. The tourist inflow to Cyprus is showing gradual growth from all parts of Europe. United kingdom is the main source of tourist traffic. In 2003, around 13 % of the country’s gainfully employed population was connected with the tourism industry.