This post was most recently updated on November 9th, 2020
Before we talk about whether Cyprus is a developed country or not, we need to figure out how a country is considered developed in the first place.
A country is considered developed if it has a high level of economic growth, is more industrialized, and have higher per capita income levels.
Today in this article, we will look at the data that makes a country developed and compare that with Cyprus to know if it’s considered a developed country or not.
Sounds like fun? Let’s do it.
Per Capita Gross Domestic Product (GDP)
Gross Domestic Product is a measure of the market value of goods produced and services provided in a country during a specific period of time.
Per capita income is national income divided by population size.
Per Capita Gross Domestic Product (GDP) is a metric that breaks down a country’s economic output per person and is calculated by dividing the GDP of a country by its population.
For example, let’s say one country’s GDP is 20 Billion USD and it has a population of 1,000,000 (One Million).
The GDP per capita of that country would be 20,000 USD.
Here is how:
For a country to be considered developed its GPD per capita has to be at least $12,000(USD). Some economists believe that the per capita GDP has to be $25,000 (USD) to have a more realistic measurement threshold.
According to the Tradingeconomics, the per capita GDP of Cyprus in 2019 was 32,093 USD.
Cyprus has a high level of economic growth, as you can see in the above picture.
The Per Capita Gross Domestic Product (GDP) of Cyprus is above the measurement threshold. Hence, as per Per Capita GDP, Cyprus can be considered as a developed country.
Gross National Income/Product (GNI/GNP)
Gross National Income is the GDP + Money coming from Foreign Countries – Money going to Foreign Countries.
While GDP measures the market value of all final goods and services produced in a given country, GNI measures income generated by the country’s citizens, regardless of the geographic location of the income.
The GNI will be high when less money is going to other countries and more money is coming from them.
In many countries, GDP and GNI are close, as the difference between income received by the country versus payments made to the rest of the world is not significant.
According to the Tradingeconomics, the Gross National Income of Cyprus in 2019 was 21,943.62 Million Euro.
As the GNP of Cyprus is going up every year, we can say it’s a developed country.
Level of Industrialization
The Industrial achievements of Cyprus during the last few decades have been significantly booming.
Cyprus as a financial hub
Businesses from outside the EU use Cyprus as their entry-point for investment into Europe.
The business services sector is the fastest-growing sector of the economy in Cyprus and had overtaken all other sectors.
Cyprus as a shipping hub
Cyprus has one of the largest ship management centers in the world.
50 ship management companies all around the globe have been conducting their international activities and business in Cyprus.
Cyprus Tourism Industry
With over 2 million tourist arrivals per year, Cyprus is the 40th most popular destination in the world. The tourism industry has helped Cyprus a lot to grow the country’s economy.
The Cyprus tourism industry has been awarded multiple times by various international awards.
Oil and Gas Industry of Cyprus
Cyprus Oil and Gas industry has attracted multiple foreign companies to invest in Cyprus.
A survey suggests, between Cyprus and Israel lies more than 10o Trillion Cubic Feet of untapped reserves which is almost equal to the world’s total annual consumption of natural gas.
Human Development Index (HDI)
Human Development Index is a statistical index that measures the key dimensions of human development.
It’s a composite index of life expectancy, education, and per capita income indicators.
A country scores a higher HDI when the lifespan is higher, the education level is higher, and the gross national income GNI (PPP) per capita is higher.
HDI over 0.800 is the threshold for a very high development index.
According to the data of 2018 A.D., Cyprus has a Human Development Index of 0.873 which is very high.
Is Cyprus a developed country? Is Cyprus Rich or Poor?
Cyprus is a highly developed rich country. Cyprus has a high per capita gross development and gross national product. The level of industrialization is sustainably growing every year. Cyprus has an HDI of 0.873 which is above the threshold.
I guess after analyzing all these data, we can say that Cyprus is a developed country.
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