The current account of the Balance of Payments improved considerably during 1987, exhibiting a surplus of 44 million or 2,5% of GDP, for the first time since the Turkish invasion. The improved performance during 1987 is attributed to the resurgence of exports of goods (especially industrial), the continuing increases in exports of services (mainly tourism), as well as the containment of the rate of increase of imports to a level lower than that of total demand. In 1988, imports rose faster, by more than 20%, a development which almost wiped out the current account surplus achieved in 1987.

A slight improvement was also observed in the operations of the public sector. The fiscal deficit remained stable in absolute figures at 64 million, while it decreased as percentage of GDP from 4% in 1986 to 3% in 1988.

Source: www.kypros.org