Cyprus economic index shows marginal growth in August

In August 2026, the Cyprus Composite Leading Economic Index (CCLEI) returned to marginal positive growth, recording a year-over-year increase of 0.02%. This recovery follows five consecutive months of declines for the indicator, which is maintained by the Economics Research Centre (CypERC) at the University of Cyprus.

The improvement was driven by positive performances in several domestic components, specifically property sales contracts, credit card transactions by residents, retail sales volume, and temperature-adjusted electricity production. These local sectors successfully acted as a counterbalance to persistent international pressures, including higher Brent crude oil prices and a year-over-year decline in tourist arrivals. Furthermore, the weighted Economic Sentiment Indicator remains lower compared to August 2025, which has capped the overall extent of the recovery.

While the CypERC suggests these findings point toward a gradual improvement in the short-term economic outlook, experts highlight that the geopolitical and international economic climate remains challenging. The index continues to serve as a vital tool for predicting future economic directions, with authorities monitoring these volatile factors to gauge the stability of the ongoing recovery.