Cyprus is one of the countries to be hit the hardest from Brexit according to a report from Standard and Poor's (S&P), ranking 4th.
S&P Global Ratings' latest survey of 21 countries most exposed to Brexit lists Ireland, Luxembourg, and the Netherlands as the economies most susceptible to any trade and migratory aftershocks, with the South European nation taking 4th place.
"With its large tourism, auditing, and financial sectors, and historical connections to the UK, Cyprus remains close to the top three economies most exposed to Brexit," the survey report said. The UK market remains Cyprus' main source of visitors.
With its large tourism, auditing, and financial sectors, and historical connections to the UK, Cyprus remains close to the top three economies most exposed to Brexit"
"Cyprus hosts a large population of UK pensioners, as well as two military bases, technically a British Overseas Territory that accounts for 3% of Cyprus."
It also said a large portion of Cypriot nationals live and work in the UK
"We estimate that annual remittances of Cypriot nationals resident in the UK to Cyprus amount to around 0.2% of Cyprus' annual GDP."
It underlined that this was "a substantial figure", albeit below that for Hungary (0.3% of GDP), Lithuania (0.4% of GDP), and Latvia (0.6% of GDP).
"Cyprus is no stranger to external shocks, having managed to retain much of its business services sector and to recover economically from the 2012-2013 financial crisis and sovereign default. Even so, Brexit could create headwinds for its economy, given the importance of migratory, export, and financial links between the two countries," S&P said.
S&P said its Brexit Sensitivity Index (BSI) measures goods and services exports to the UK, bidirectional migrant flows, financial sector claims on UK counterparties on an ultimate risk basis, and foreign direct investment (FDI) in the UK.
The BSI is the sum of these four data points all normalised and converted into a scale from 0 to 1. The higher the sum, the greater the exposure. Cyrus was also ranked 4th in S&P's first Brexit index in 2016, which was compiled prior to the British referendum in June that year.
As the Brexit deadlock continues, Britons in Cyprus will continue to have healthcare coverage for an interim period of several months.
At the end of that period, UK and Cyprus will seek a longer-term bilateral agreement to secure reciprocal healthcare for Britons in Cyprus and Cypriots in the UK, according to the British High Commission.