The Cypriot economy continued on its positive growth trajectory in September, with the Cyprus Composite Leading Economic Index (CCLEI) recording a solid 1.8% year-over-year increase. The growth was supported by strong performances in the tourism and retail sectors, demonstrating the economy’s resilience despite external challenges.
Key Sectors Driving Positive Momentum
According to the Economics Research Centre (CypERC) at the University of Cyprus, which compiles the index, the positive performance was underpinned by several key indicators.
The main drivers included:
- A continued rise in tourist arrivals.
- Robust activity and growth in retail trade.
- A beneficial fall in the international price of Brent crude oil, which helps ease business costs and inflationary pressures.
Navigating External Headwinds
The report noted that the 1.8% growth rate, while solid, represents a moderation from the slightly higher increases seen in July (2.2%) and August (2.1%).
This moderation is attributed to several factors the economy is navigating, including a less favorable Economic Sentiment Indicator (ESI) in the euro area. Domestic factors such as a dip in temperature-adjusted electricity production and a slowdown in property sales contracts also contributed to the pace of growth.
A Resilient Outlook
The CypERC’s overall assessment suggests that the Cypriot economy is successfully navigating a complex global environment. While it remains sensitive to geopolitical developments and economic uncertainty, the index confirms that the underlying momentum remains positive and on a path of steady growth.
Source: Stockwatch.com.cy