Population: 780,133 (July 2005 est.)

Capital: Nicosia

Languages: Greek, Turkish, English

Religions: Greek Orthodox 78%, Muslim 18%, Maronite, Armenian Apostolic, and other 4%

Government: republic a separation of the two ethnic communities inhabiting the island began following the outbreak of communal strife in 1963; this separation was further solidified after the Turkish intervention in July 1974 that followed a Greek junta-supported coup attempt gave the Turkish Cypriots de facto control in the north; Greek Cypriots control the only internationally recognized government; on 15 November 1983 Turkish Cypriot "President" Rauf DENKTASH declared independence and the formation of a "Turkish Republic of Northern Cyprus" (TRNC), recognized only by Turkey

Climate: temperate; Mediterranean with hot, dry summers and cool winters

Terrain: central plain with mountains to north and south; scattered but significant plains along southern coast

Geography: the third largest island in the Mediterranean Sea (after Sicily and Sardinia)

Ethnic groups: Greek 77%, Turkish 18%, other 5% (2001)

Economy: The Republic of Cyprus has a capitalist economy dominated by the service sector, which accounts for 76% of GDP. Tourism and financial services are the most important sectors; erratic growth rates over the past decade reflect the economy's reliance on tourism, which often fluctuates with political instability in the region and economic conditions in Western Europe. Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005 and could adopt the euro within the next two years. Although sluggish tourism and poor fiscal management have resulted in high budget deficits since 2001, the government is pursuing reforms to trim the deficit. As in the Turkish sector, water shortages are a perennial problem; a few desalination plants are now on-line. After 10 years of drought, the country received substantial rainfall from 2001-03, alleviating immediate concerns. The Turkish Cypriot economy has roughly one-third of the per capita GDP of the south, and economic growth tends to be volatile, given north Cyprus's relative isolation, bloated public sector, reliance on the Turkish lira, and small market size. The Turkish Cypriot economy grew 15.4% in 2004, fueled by growth in the construction and education sectors as well as increased employment of Turkish Cypriots in the Republic of Cyprus. The Turkish Cypriots are heavily dependent on transfers from the Turkish government. Under the 2003-06 economic protocol, Ankara plans to provide around $550 million to the "TRNC." Agriculture and services, together, employ more than half of the work force, especially with tourism growth and the easing of border restrictions with the Greek Cypriots since April 2003.

GDP per capita: Republic of Cyprus: purchasing power parity - $21,600 (2005 est.); north Cyprus: purchasing power parity - $7,135 (2004 est.)

GDP real growth: Republic of Cyprus: 3.8% (2005 est.) north Cyprus: 15.4% (2004 est.)

Unemployment rate: Republic of Cyprus: 3.5% (2005 est.); north Cyprus: 5.6% (2004 est.)

Internet country code: .cy

Dial code: +357