Central Bank of Cyprus - Annual Report 2004

According to the Central Bank of Cyprus's Annual Report 2004, the acceleration in economic activity, particularly domestic demand, led to a current account deficit of 5.8% of GDP in 2004 compared with 3% of GDP in the previous year.

'Other external factors, such as the increase in the international price of oil as well as the reduction in excises on most categories of motor vehicles, also contributed to the deterioration of the current account deficit. In particular, car imports increased by

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