The exports of services increased at an average annual rate of 11,5%, very close to the target of 11,3%. Earnings from tourism increased at a lower average annual rate of 12%, compared to the target of 13,4%, due to the fall by 8% of tourist arrivals in 1993. Exports of all other services as a whole expanded at an average annual rate of 10,5%, overshooting the target of 8%. This reflects the very good performance in services, such as off-shore companies, consultancy, professional, shipping and other services.

Imports of goods and services increased at an average annual rate of 8%, lower than the target of 9,7% set for the five-year period. This is due, to a large extent, to the fact that imports during 1993 exhibited a significant deceleration on account of the low economic activity.

Developments in the current account balance, the surplus in the capital account and the higher inflow of non-residents deposits led to a rise of foreign exchange reserves to very satisfactory levels. Import coverage by foreign exchange reserves reached on average nearly 11,5 months, compared to 9 months which was the target set in the Plan, and more than covered the country's foreign debt by 29%.

Foreign debt as a percentage of the G.D.P. moved in the direction set by the Plan. It dropped from 33,2% in 1988 to about 26% in 1993, while the debt service ratio was confined to 9,5% on average compared to the anticipated 11%.

Source: www.kypros.org