The Cyprus Composite Leading Economic Index (CCLEI) recorded an annual increase of 2.2 per cent in August, albeit showing a slowdown compared to the 2.4 per cent and 2 per cent annual increases observed in the months of July and June 2023, respectively.
According to the University of Cyprus’ Centre for Economic Research (CypERC), which compiles the relevant report, the moderation in the CCLEI’s growth is partly attributed to the rate of growth in electricity production volume adjusted for temperature.
It noted that this particular indicator has continuously experienced a year-on-year decline since May 2023.
Furthermore, the upward trajectory of the index is constrained by the Economic Climate Indicator (ECI) in the Eurozone, which registered a negative annual growth rate in August 2023, in contrast to the corresponding ECI in Cyprus, which showed an annual increase.
“The ongoing deterioration observed in the Eurozone’s ECI reflects the exceptionally uncertain European economic environment, which inevitably impacts the growth prospects of the Cypriot economy,” noted CypERC.
It is worth noting, however, that other sectors comprising the CLEI, including tourism and retail trade, have contributed to maintaining a positive annual growth rate for the indicator.
Summing up, the CCLEI’s upward trend continued in August 2023 despite the persisting uncertainty. The positive performance of most domestic sectors making up the index maintains the annual growth rate of the indicator positive.
“Nevertheless, its deceleration reflects the highly unstable economic and geopolitical environment prevailing, particularly at the international level,” the centre in its report.
