PPP, COLAs, CPI, ForEx....

Purchasing power parity, Cost of living adjustments and CPI, ah! all those economic papers I had to write (and where was the Internet when *I* needed it??). Then I went back for another 2 years and learned how to add back depreciation? What was I thinking...

The point of this post is not Economics, but to give an insight into daily life in Nicosia, since we still do things like eat, get dressed in the morning and once in a while have a little fun. I've had many questions about what the costs are and what the economy is like, so I will try and address both of those.

Having only been here a couple weeks, I'm still adjusting to living in 3 currencies: Cypriot Pounds, Turkish Lira and then of course trying to take it back to USD. I'm trying to collect info on everyday products, but here is where I need YOUR help. Is there something you would be interested in knowing what it is here? Go to the comments section of this post and let me know what your interested in, so far I've had requests for:

Medium Latte at Starbucks (yes! they are here)
Sandwich meat / cheese
Quarter pounder meal ("It's the little differences")
Medium priced dinner out - Italian
Unleaded gas

I'm collecting this info and will post soon, if there is anything else, please let me know and I can add it!

As for the Economics of this island, Cyprus officially joined the EU 01 May 2004. Of the 10 new countries, Cyprus has the highest per capita income, which most closely mirrors the rest of Europe. The growth rate, like the international rates, have declined since the start of OIF and is at about 2%, although services (including most important tourism) contributes over 75% to GDP and the ascension into the EU should make travel easier and 2005 growth is expected to increase to about 4%. Further, lifting restriction on FDI may fuel construction, tourist investment in property, and of course money laundering. One of the larger services, like the Caribbean, is banking, tax shelters and all those things, which go along with that.

It's location, between the EU, North Africa and the Middle East makes it a prime jumping off spot for business, much like Miami is an exchange btwn North America and Latin America. Like most islands, it is not self-sufficient and has to import most everything. Having been to the North only once, my experience on which to draw is limited, however I'm comfortable stating that the South has generally a higher standard of living, and higher cost of living. The North is noticeably less modern, less expensive and very friendly. We already have a great rug dealer, does lots of business with American expats, a pretty good restaurant (with great meze) and a good framer for all our soon to be new art.

Like I said, if there is anything specifically in which you have interest in it's pricing, let me know and I will check it out. Besides, it gives me a chance to see if anyone is really reading this or if I'm just typing in to a black hole!