The Cyprus Composite Leading Economic Index (CCLEI), compiled by the Economics Research Centre (ERC) of the University of Cyprus, registered a stable annual growth rate of 2.0% in October 2025. This figure, showing only a slight deceleration from 2.1% in August and 2.0% in September, suggests that the Cypriot economy is successfully maintaining a positive trajectory even as it faces persistent global geopolitical turmoil and high economic uncertainty.
Key Drivers of Stable Growth
According to the ERC, the consistent annual growth rate reflects a dynamic balance between several key components of the index. Factors that positively contributed to the CCLEI’s performance in October included:
- Sentiment Improvement: Strengthening of the Economic Sentiment Indicator (ESI) in both Cyprus and the wider Euro Area.
- Sector Performance: Continued positive trends in tourist arrivals, retail trade volume, and real estate sales.
- Oil Price Relief: A decline in the market price of Brent crude oil, which reduces business costs.
Factor Dragging Down the Index
The overall positive growth rate was partially restrained by one significant indicator:
- Electricity Production: A decrease in the temperature-adjusted electricity production was noted by the ERC. This metric carries a substantial weight in the CCLEI calculation and acted as a counterbalance to the otherwise positive trends.
Overall, the index’s stability confirms the Cypriot economy’s resilience and its ability to sustain moderate growth amid challenging external conditions.
Source: Stockwatch.com.cy