Cyprus’ Composite Leading Economic Index (CCLEI) climbed 2.3% year-over-year in June 2025, marking its third straight month of growth, according to data released by the University of Cyprus’ Economics Research Centre (CypERC). While the index remains in positive territory, the latest figures suggest that economic momentum is beginning to ease.
Compared to stronger annual gains of 3.1% in April and 2.6% in May, the more modest rise in June reflects a gradual cooling in overall activity. This slowdown has been primarily linked to weaker performances in the Economic Sentiment Indicators for both Cyprus and the eurozone, pointing to growing caution among businesses and consumers alike.
Adding to the softer outlook is a reduced growth rate in temperature-adjusted electricity production, often used as a proxy for industrial and household energy demand.
However, several key indicators continue to support the economy’s forward trajectory. In June, positive contributions came from increased property sales contracts, rising tourist arrivals, strong credit card transaction volumes, and steady retail turnover. These factors, along with a drop in Brent crude oil prices, have helped ease input costs and supported consumer spending, providing a cushion against the broader deceleration.
CypERC analysts note that while the CCLEI still reflects growth, the pace is being tempered by rising external risks. Uncertainty surrounding geopolitical developments—especially in the Middle East—and their potential influence on global energy markets are among the primary concerns for the economic outlook in the second half of the year.
For Cyprus, the real estate and tourism sectors appear to be among the more resilient pillars, helping to sustain overall growth. Continued foreign interest in property, paired with healthy tourism flows, is expected to offer some stability even as broader indicators soften.
Source: Stockwatch.com.cy