Cyprus maintains economic momentum in October despite global challenges

The Cyprus Composite Leading Economic Index (CCLEI), compiled by the Economics Research Centre (CypERC) of the University of Cyprus, recorded a year-on-year increase of 2.0 per cent in October 2025, according to the centre’s latest report.

The increase mirrors the 2 per cent rise recorded in September and follows a 2.1 per cent increase in August, based on revised figures.

According to the CypERC, the stability of the index’s growth rate in October reflects a balance between positive and negative trends among the economic indicators that comprise it.

The report noted that the strengthening of the Economic Sentiment Indicator (ESI) in both Cyprus and the euro area, alongside continued growth in tourist arrivals, retail trade activity, and property sales contracts, supported the overall rise in the index.

At the same time, the decrease in Brent crude oil prices contributed positively to the CCLEI’s performance by easing cost pressures.

However, the decline in temperature-adjusted electricity production, which carries significant weight within the index, acted as a drag on growth, moderating the overall upward trend.

CypERC analysts said the data indicate that the Cypriot economy remains on a positive trajectory, even as geopolitical instability and economic uncertainty persist globally.

They added that the stability of the CCLEI in October suggests continued resilience across key sectors of the Cypriot economy.

The CCLEI, developed by the University of Cyprus, serves as an early warning indicator of turning points in economic activity.

It tracks a set of leading variables that historically change before shifts in overall economic conditions, offering insights into forthcoming trends in growth and business cycles.

The components of the CCLEI include the Brent crude oil price, the Economic Sentiment Indicator in Cyprus and the euro area, the total number of property sales contracts, tourist arrivals, the value of Cypriot credit card transactions, the retail trade turnover volume index, and the temperature-adjusted volume index of electricity production.

Together, these indicators capture the combined impact of both domestic and international economic forces on Cyprus’ short-term outlook.