”South and north, hot and cold, left and right hand traffic; the superficial differences of Cyprus and Sweden are many. Though, in these times the economic situation is perhaps the most notable difference”

The Cypriot economy is based on tourism, agricultural, fishing and shipping. The Swedish economy is based on services, mines, industry and is greatly dependent of export, which constitutes approximately 50 % of GDP.

The economic development during the last decade has differed between the two countries. The financial crisis hit Cyprus hard, but the government managed to exceed the expectations of the IMF by emerging more quickly from its 2013 program (Jon Gorvett, Institutional Investor, 2015). The Cyprus economy has grown by 2.5 % during that last quarter of 2015 compared to the same quarter 2014 (Statistical service of the Republic of Cyprus, 2016). The economy is predicted to grow further during 2016 and 2017. Although the unemployment rate remains high at 15.1 %, it is starting to decrease (European Commission, 2016).

Sweden was not hit as hard by the economic crises and is now entering a period of economic growth. The unemployment rate, on 7.4 %, is expected to fall, but only gradually, since it will take time for immigrants to integrate into the labour market. Further, the housing issue in Sweden is regularly empathized by the European Commission, as are the household debts (European Commission, 2016). Even so, the Swedish economy is doing well.

Stating that there are actual economical differences between the countries, disadvantageous to Cyprus, the Cypriots remains more optimistic for the future compared to the Swedish. Stated in a report from the European Commission, 27 % of the Cypriot respondents believe that the economy in Cyprus will improve during the next twelve months. Among the Swedish respondents only 9 % believe that the economic situation in Sweden will improve. The majority, 48 %, of the Swedish respondents actually believe that the economy in Sweden would get worse the next 12 months. Regarding the economic situation in EU in general, 16 % of the Cypriot respondents remained positive, while only 10 % of the Swedish respondents predicted an improving European economy.

In conclusion, the Cypriots dare to stay more positive at hard times, while the Swedish people remain pessimistic.

The study was conducted by the European Commission in autumn 2015, including 500 face to face interviews in Cyprus and 1,018 in Sweden.