Revisiting the Economic Landscape of Turkish Cypriots
In a recent correspondence, Eltan Halil from Nicosia addressed concerns raised by an article in the Cyprus Mail, which painted a grim picture of the Turkish Cypriot economy. Halil highlighted several overlooked but significant economic indicators that suggest a more nuanced reality.
Despite the staggering inflation rate of 94.5 percent, there are positive signs, particularly in the realm of unemployment rates. Data from the annual Household Labour Force Survey (HLFS) indicates a decline in unemployment to 5.1 percent in 2023, marking the lowest level since reliable records commenced in 2004. This is a notable improvement from the 6.3 percent in 2019, peaking at 10.1 percent during the tumultuous year of 2020, and gradually decreasing to 7.8 percent in 2021 and 6.8 percent in 2022.
Furthermore, the narrative of economic decline is challenged by the impressive economic growth experienced in 2022. Estimates revealed that the Gross Domestic Product (GDP) surged by 13.3 percent in real terms, outpacing any growth since the post-Annan Plan referendum period. This is a stark contrast to the mere 3.9 percent growth in 2021 and the significant contraction of 16.2 percent in 2020 due to the pandemic-induced recession.
Another positive indicator is the rise in Gross National Product per capita, which climbed from $10,055 in 2020 and $11,129 in 2021, to $14,648 in 2022. Additionally, the value of exports increased by nearly 27 percent in 2023 compared to the previous year, reaching around $160 million—the highest in at least a decade. Notably, exports via the “Green Line” also saw an uptick from $6.12 million in 2021 to $14.77 million in 2022 and further to $16.75 million in 2023.
The tourism sector is witnessing a resurgence as well, with tourist numbers soaring by 31.1 percent from approximately 1.4 million in 2022 to nearly 1.9 million in 2023.
In response to high inflation, measures have been implemented to protect purchasing power, including a substantial 52.4 percent increase in minimum wage and various forms of support for small business owners and public sector employees.
Halil’s insights call for a reconsideration of the economic narrative surrounding Turkish Cypriots, urging for a more balanced representation that acknowledges both challenges and progress.
