economic momentum — The Cyprus Composite Leading Economic Index (CCLEI) shows that economic momentum in Cyprus continues to thrive, with a year-on-year increase of 2.0 per cent recorded in October 2025. This figure, reported by the Economics Research Centre (CypERC) at the University of Cyprus, matches the 2 per cent rise observed in September and follows a 2.1 per cent increase in August.
According to the latest CypERC report, this stability in the index is a reflection of a balance between various positive and negative trends within the economic indicators it encompasses. The growth is buoyed by a strengthening Economic Sentiment Indicator (ESI) in both Cyprus and the wider euro area. Additionally, the continuous rise in tourist arrivals, increased retail trade activity, and a healthy number of property sales contracts have all contributed positively to the index’s performance.
Another factor aiding the CCLEI is the decrease in Brent crude oil prices, which has alleviated some cost pressures on the economy. However, the report also highlights a decline in temperature-adjusted electricity production as a significant drag on growth, indicating that not all indicators are moving in a favourable direction.
CypERC analysts assert that the data suggests the Cypriot economy is on a positive trajectory, even amidst ongoing global geopolitical instability and economic uncertainty. The consistent performance of the CCLEI in October is seen as a sign of resilience across key sectors of the economy.
The CCLEI, developed as an early warning indicator, tracks a variety of leading variables that typically change before overall economic conditions shift. The components of the index include Brent crude oil prices, the ESI for Cyprus and the euro area, the total number of property sales contracts, tourist arrivals, the value of Cypriot credit card transactions, retail trade turnover volume index, and the temperature-adjusted volume index of electricity production. Together, these indicators provide a comprehensive view of both domestic and international economic forces impacting Cyprus’ short-term outlook.
This latest report serves as a reminder of the delicate balance within the Cypriot economy, where positive growth is tempered by certain challenges. As Cyprus navigates these complexities, the CCLEI remains a crucial tool for anticipating shifts in economic activity and trends.
