The T/C growth rate exceeded 5% for the second consecutive year in 2003, while the latest developments in 2004 are a sign of further growth acceleration. According to the “State Planning Organization” data, the “GDP” for 2003 in the occupied territories increased by 5.4% to $1,208,5 million compared to $941,4 in 2002.
The uncertainty of the political developments in the occupied territories contributed heavily to this latest development, T/C academic and economist, Mustafa Gunduz told StockWatch. “Several consumers’ and investment expenditure were affected by the developments of the Cyprus issue and the “elections” held in the northern part of the island. However, the boom in the construction industry and the real estate business will shoot growth rate to 8% to 9%. For the first quarter of 2004 already, the growth rate reached 10% on an annual basis”, he added.
The GDP per capita in the occupied areas stood at $5.600 in 2003 against $4,409 in 2002.
On the question whether the opening of the checkpoints last April contributed to this growth, Mr. Gunduz appeared quite reserved, stressing that the T/C spend more money to the free areas than the G/C in the occupied. “The fact that 4 to 5 thousand T/C are employed in the free areas has affected unemployment in the north though”.
The T/C economist also expressed the hope that the Green Line Regulation will contribute to the T/C economic growth, however, the “closed” economy of the north will not be able to absorb all the benefits from the direct trade with the European Union.
The uncertainty of the political developments in the occupied territories contributed heavily to this latest development, T/C academic and economist, Mustafa Gunduz told StockWatch. “Several consumers’ and investment expenditure were affected by the developments of the Cyprus issue and the “elections” held in the northern part of the island. However, the boom in the construction industry and the real estate business will shoot growth rate to 8% to 9%. For the first quarter of 2004 already, the growth rate reached 10% on an annual basis”, he added.
The GDP per capita in the occupied areas stood at $5.600 in 2003 against $4,409 in 2002.
On the question whether the opening of the checkpoints last April contributed to this growth, Mr. Gunduz appeared quite reserved, stressing that the T/C spend more money to the free areas than the G/C in the occupied. “The fact that 4 to 5 thousand T/C are employed in the free areas has affected unemployment in the north though”.
The T/C economist also expressed the hope that the Green Line Regulation will contribute to the T/C economic growth, however, the “closed” economy of the north will not be able to absorb all the benefits from the direct trade with the European Union.
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