The finance sector was Cyprus’ number one income earner.
But it was not its number one employer, by a long way.
That\’s even more interesting.
Having been a tax haven will prove to be a disaster fro the people of Cyprus. With all other economic activity squeezed into the background by an over-expanded finance sector the ripple effect will be enormous.
And that\’s nonsense of course.
Finance and insurance was, by Ritchie\’s own numbers, 4.8% of total employment (rather less than it is in our own dear UK, rather less than it is in most advanced countries in fact). Yet it was the largest earner? That shows that a) finance and insurance was vastly more productive than employment in any other sector and b) there wasn\’t much crowding out as the sector was a small, even underweight, percentage of total unemployment.