Cyprus leading economic indicator shows moderate decline in July 2026

The Center for Economic Research at the University of Cyprus reported that the island's Composite Leading Economic Indicator (CLEI) recorded a slight year-on-year decline of 0.43% in July 2026. While the indicator remains in negative territory, this result marks a progressive moderation of the decline, following decreases of 0.69% in June and 1.34% in May 2026.

The economic environment remains influenced by heightened external and geopolitical pressures. The performance of the indicator in July was driven by conflicting factors: the weighted Economic Sentiment Indicator deteriorated across all sectors, and Brent crude oil prices recorded a year-on-year increase alongside lower tourist arrivals. These negative trends were partially offset by positive performances in key domestic components of the indicator, suggesting that while challenges persist, the pace of the downturn is slowing down.