Cyprus economic outlook improves in May

The Cyprus Composite Leading Economic Index (CCLEI), constructed and estimated by the Economics Research Centre of the University of Cyprus (CypERC), saw a marginal increase of 0.1 per cent in May 2024.

According to the relevant report, this follows year-on-year declines of 0.2 per cent in April and 0.4 per cent in March, respectively, based on the most recently revised data.

The centre explained that the positive estimate for May primarily reflects the annual growth in several domestic variables, including tourist arrivals, credit card transactions, retail sales volume, and electricity production adjusted for temperature.

Meanwhile, the stable Economic Climate Index (ECI) in Cyprus in May 2024, which matched last year’s level, had a neutral impact on the CCLEI change.

In contrast, negative growth in the European Economic Climate Index (EECI), combined with annual growth in Brent Crude oil prices and a decline in the annual growth rate of property sales transactions, restrained further upward movement of the CCLEI in May.

The report concluded by saying that the annual growth rate of the CCLEI in May 2024 showed a slight positive trend, reversing the index’s recent months of decline.