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Cyprus: Selected Issues

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  • International Monetary Fund

Abstract

This Selected Issues paper examines the adequacy of Cyprus’ economic competitiveness. The paper looks at the recent behavior of conventional indicators of competitiveness, estimates Cyprus’ equilibrium real exchange rate, and provides an econometric analysis of the main determinants of service exports. The overall conclusion is that the country’s current level of the real effective exchange rate is in line with savings-investment fundamentals, but that the recent unfavorable trends in public savings and relative unit labor costs should be reversed to avoid problems in the medium term. The paper also analyzes the financial reform in Cyprus.

Suggested Citation

  • International Monetary Fund, 1998. "Cyprus: Selected Issues," IMF Staff Country Reports 1998/098, International Monetary Fund.
  • Handle: RePEc:imf:imfscr:1998/098
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    Cited by:

    1. International Monetary Fund, 2005. "Cyprus: Selected Issues and Statistical Appendix," IMF Staff Country Reports 2005/106, International Monetary Fund.
    2. George Kyriacou & Maria Papageorghiou, 2010. "Assessing the Equilibrium Exchange Rate of the Cyprus Pound at the time of Euro Adoption," Working Papers 2010-6, Central Bank of Cyprus.
    3. Constantinos Stephanou & Dimitri Vittas, 2007. "Public Debt Management and Debt Market Development in Cyprus: Evolution, Current Challenges and Policy Options," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 1(1), pages 49-80, June.

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