The Cyprus Composite Leading Economic Indicator (CCLEI), a tool used to gauge the country’s future economic activity, rose by 1.8% year-on-year in May 2025, according to the Economics Research Centre (CypERC) at the University of Cyprus.
This comes after slightly higher annual growth rates in April (+2.6%) and March (+3.2%), based on the latest revised figures.
Still Rising – But Gradually
Although the CCLEI continues on an upward path, its momentum has slowed down. This softening trend reflects changes in several of the index’s individual components. For example, Cyprus’ Economic Sentiment Indicator (ESI) has seen a slower growth rate, while the overall economic climate in the eurozone took a hit during April and May 2025.
Mixed Signals from Key Sectors
Not all data points were encouraging. One of the key short-term indicators — electricity production adjusted for temperature — showed a decline in its year-over-year growth.
However, other economic indicators helped to offset the dip:
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Tourist arrivals remained strong
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Property sale contracts continued to climb
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Spending with Cypriot credit cards increased
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Retail trade volume also held up well
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And a drop in Brent crude oil prices gave the index a small boost
What This Means for the Economy
While the index is still trending upward, the slowing pace suggests external factors — like the weakening euro area economy — are putting pressure on Cyprus’ short-term outlook. According to CypERC, it’s more important than ever to keep an eye on how these trends evolve to get a clearer view of the island’s medium-term economic prospects.
Source: Stockwatch.com.cy