The rapid recovery of the economy and the attainment of full employment conditions by the end of the '70s brought in surface stability problems and structural weaknesses which threatened further progress. In the context of the Fourth Emergency Plan, 1982-86, it was hence considered necessary to adopt a new strategy, attaching emphasis on capital rather than labour intensive projects and on the restructuring of the economy, while in parallel addressing the problems of external and internal instability, mainly by pursuing a more restrictive fiscal policy.

The basic objectives and targets of the Plan, regarding growth, employment and internal stability were attained. Moreover, the decline of oil prices in world markets, the relatively low real interest rates prevailing at that time and the partial recovery of demand in the industrialised countries, in conjunction with stabilisation measures introduced by the Government, helped to ameliorate, towards the end of the planning period, the problem of external instability and improving the Balance of Payments position of the country.

Source: www.kypros.org