The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
Cyprus's economic performance in the past quarter century has been impressive but volatile, as the economy has come to rely on tourism as the main engine of growth. Financial market restrictions, including the interest rate ceiling, limit the ability of the Central Bank of Cyprus to manage liquidity. Capital and financial market liberalization are planned to be implemented by the time of EU accession. Executive Directors commended the authorities for their efforts to improve the oversight of the offshore financial sector.