The Cypriot economy continued to show positive signs in March 2025, driven by stronger real estate activity and retail sales, according to the latest data from the Cyprus Composite Leading Economic Index (CCLEI), compiled by the University of Cyprus’ Economics Research Centre (CypERC).
Growth Persists, but Slows
Although the CCLEI maintained its upward trend, the annual growth rate eased to 1.7% in March, down from 2.3% recorded in February 2025.
The CypERC noted that the softer growth reflects growing uncertainty in the global economy, which continues to influence economic conditions in Cyprus and beyond.
Despite the slowdown, March still marked a positive performance, following increases of 2.3% in February and 2.4% in January, according to the center’s latest revised figures.
Key Drivers Behind the Positive Trend
The CypERC explained that improvements in several domestic and international indicators helped sustain the positive movement of the CCLEI. Notable contributors included:
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Higher real estate sales
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Increased total value of credit card transactions by Cypriot consumers
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Stronger retail sales volumes
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Falling Brent crude oil prices
Factors Holding Back Stronger Growth
On the other hand, weaker consumer confidence levels, both in Cyprus and across the eurozone, weighed on the index’s momentum.
Additionally, a decline in tourist arrivals and preliminary figures showing reduced electricity production also exerted downward pressure.
While uncertainties remain, the continued gains in real estate and retail sectors highlight the resilience of Cyprus’ economy heading into the second quarter of 2025.
Source: Cyprus-Mail