Major deviations from the provisions of the Plan were also observed in the production sphere. The value added in the sector of agriculture expanded by 2% annually in real terms during the period 1989-93, while the Plan anticipated an average annual increase of 2,5%. The deviation from the target was mainly attributed to the prolonged period of drought during 1989-91. The value added of the manufacturing sector expanded marginally by 0,5% in real terms, which is much lower than the target, 5%, reflecting the adverse conditions encountered in the key export markets of Cyprus and the structural problems faced by the sector.

Growth in the services sectors linked with tourism was also lower than anticipated by the Plan, on account of the adverse conditions encountered in 1991 and the problems experienced in 1993. The value added of the sector of hotels and restaurants increased at a relatively low average annual rate of 6,5% in real terms during the period 1989-93, compared to 7,9% anticipated by the Plan, while the transport sector registered an increase of 2,5% during the same period, as against the targeted 4,5%.

Despite the problems faced at times by the sectors linked with tourism, the tertiary sectors of services as a whole displayed a satisfactory increase of 6,5% the leading sectors were communication (11%, target 9,5%), professional services (11%, target 7,5%), bank services (11%, target 5,5%), and social services (9,5% target 7%). In general, these sectors proved to be more dynamic than anticipated by the Plan. This development was attributed to the high income elasticity of demand of most services and, in terms of the supply conditions, with the high educational standard of the labour force, and the favourable geographic location of Cyprus.

Apart from certain services sectors, the progress during 1989-93 was also based on the intense activity of the construction sector which experienced an average annual increase of its value added of the order of 3,5% in real terms, despite the problems observed in 1993, compared to 1% which was the target of the Plan.

Source: www.kypros.org