Cyprus, an EU member since 2004, has a strategic location in the eastern Mediterranean. The country's GDP primarily benefits from sectors such as tourism, financial services, and real estate. With a population of approximately 1.2 million, Cyprus has a high level of urbanization and a significant proportion of foreign residents. It uses the euro as its currency. Cyprus faces challenges including water scarcity and divisions that affect its political and economic stability, notably the separation between the predominantly Greek south and the Turkish-occupied north. The country also plays a key role in regional energy exploration activities.