Cyprus’ economic outlook remained on an upward path in March 2025, with the Cyprus Composite Leading Economic Index (CCLEI)—developed by the University of Cyprus’ Economics Research Centre (CypERC)—continuing its positive trend. However, the pace of annual growth saw a slight cooldown.
Growth Slows, But Stays Positive
The annual expansion rate of the CCLEI slowed to 1.7% in March, a step down from 2.3% in February. CypERC attributed this deceleration to heightened global economic uncertainty, which is influencing economic performance not only in Cyprus but across the globe.
Still, this modest increase builds on earlier gains of 2.4% in January and 2.3% in February, indicating that the broader economic trajectory remains stable for now.
Key Drivers of Economic Activity
The March results were buoyed by several key sectors. According to the Centre, real estate transactions, rising credit card spending, and higher retail activity helped support the index. Additionally, a decline in Brent crude oil prices provided further economic breathing room.
These factors reflect both domestic momentum and the influence of global market shifts, keeping Cyprus’ economy in cautiously optimistic territory.
Weighing Down the Gains
Not everything pointed upward, though. A dip in consumer confidence—both locally and across the eurozone—negatively impacted the index. Likewise, reduced tourist arrivals and lower electricity production added downward pressure, slightly dampening the pace of growth.
Even with these challenges, the index’s continued rise suggests that Cyprus’ economy remains resilient, especially thanks to strong performance in property and retail sectors.
Source: Cyprus-Mail