Their standard of living is reflected in the country 's " very high " Human Development Index , and Cyprus is ranked 23rd in the world in terms of the Quality-of-life Index . However , after more than three decades of unbroken growth , the Cypriot economy contracted in 2009 . This reflected the exposure of Cyprus to the Great Recession and European debt crisis . In recent times , concerns have been raised about the state of public finances and spiralling borrowing costs . Furthermore , Cyprus was dealt a severe blow by the Evangelos Florakis Naval Base explosion in July 2011 , with the cost to the economy estimated at € 1 – 3 billion , or up to 17 % of GDP
Evangelos Florakis Naval Base explosion
Evangelos Florakis Naval Base explosion
Economy of Cyprus