Strong, but susceptible to external shocks, Cyprus's economy often shudders from European and Eastern impacts - but with the discovery of oil off its coast, the future looks bright.

As a divided land, Cyprus has a strange relationship with international trade. Whilst the whole of the nation is recognised by other European Union states as the Republic of Cyprus, the Greek south of the island is seen as a free trade area, while the Turkish north is considered its military controlled neighbour. Under the watchful eye of the EU, the north has no direct trade links with any other European nation and is recognised as a nation in itself only by Turkey. This may change as EU members recognise the potential within the northern territory and the Turkish Cypriot workforce. Interestingly, none of the political discomforts have affected what could be considered a boom in the economy of late.

This can be attributed to good fortune and hard work. Oil has recently been found in the seabed between Cyprus and Egypt. Indeed, discussions and research are at an advanced stage, as explorers believe there is a lot more wealth to be found in the depths. Significant quantities of crude oil and natural gas are believed to be amongst the spoils, which are set to be divided by Lebanon, Egypt, and Cyprus. It is believed that any extra revenue would be invested in aiding a resolution within the government. Far from relying on blind luck, the country's GDP, although lower than France, Germany Italy and the UK, is well above the EU average. Not bad for a nation split in two. The internal infrastructure of the country is fantastic: a highly developed internal transport network, outstanding health care and competitive telecommunication systems are designed specifically to attract foreign investment. For major companies, Cypriot office space should be a serious consideration.

Discovering black gold
The economy of the island is dominated by the services industry, which supports the tourism, education and trade sectors. With the basis of the economy resting on such shaky foundations, many experts anticipated the economy to crumble. The nation proved many wrong, as the Turkish Cypriot territory turned out an impressive growth of 9.6 percent and 11.4 percent in 2003 and 2004 respectively.

Economic growth
More growth is expected this year, as Cyrus finally converted to the Euro at the beginning of January. Although the country may have to go through a period of relative uncertainty after the exchange - as expected through other nations' past experience- the economy is likely to keep on growing. The change will see much more inward investment from other EU states and the country's output is expected to increase. Although the Turkish sector may have to accept turning its back on the strong Lira, long term benefits of the Euro are sure to be realised, as it continues to gain more and more strength against the dollar. Whilst it is far from total comfort, the relative stability of politics in Cyprus has allowed the country to enjoy much growth in 2007. With the news of the discoveries off the coast promoting the chance of prosperity for Cyprus, the nation is set to have an exceptional future.