Cyprus economic growth slows down in January 2024

The annual growth rate of Cyprus’ Composite Leading Economic Index (CCLEI) continued to decelerate in January 2024, according to a report compiled by the University of Cyprus’ Economic Research Centre (CypERC).

According to the report, which utilised the most recently revised data, the CCLEI registered a modest 0.9 per cent year-on-year increase in January, following 1.7 per cent and 2.1 per cent increases in December and November 2023, respectively.

The Economic Research Centre’s report attributed the slowdown in CCLEI to ongoing international geopolitical tensions, including military conflicts in the Middle East and the persistent Russia-Ukraine war.

The report also highlighted the adverse impact of the economic downturn, particularly in the eurozone, on Cyprus’ economic prospects for January.

Specifically, the Economic Climate Index (ECI) in the eurozone recorded a negative annual growth rate in January 2024, contributing to a notable deceleration in the annual growth rate of Cyprus’ ECI.

Additionally, the negative annual growth rate observed in overall real estate sales and tourist arrivals further contributed to the slowdown in CCLEI in January.

On the other hand, the positive annual growth rate in CCLEI for January is attributed to the slight decline in the international price of Brent Crude oil and growth in various domestic sectors, including retail trade and electricity production.

It should be noted that the CCLEI is designed to provide timely warning signals for turning points in economic cycles, indicating potential shifts in economic activity.

Comprising a set of leading indicators, these variables tend to precede changes in overall economic activity and are regularly evaluated to gauge economic conditions.