Cyprus composite leading economic indicator rises for second consecutive month

Cyprus’s Composite Leading Economic Indicator (CLEI) recorded an annual growth rate of 0.28% in September 2026, marking its second consecutive month of positive performance following a marginal 0.01% increase in August. According to the Economics Research Centre (ERC) of the University of Cyprus, this trend suggests a potential improvement in the country's short-term economic outlook.

The recovery is largely attributed to domestic factors, including an increase in property sales documents, higher credit card transaction volumes by residents, and growth in the retail sales index. The weighted Economic Sentiment Indicator also provided a modest positive contribution. Despite these domestic gains, the index's growth was constrained by external pressures, most notably the significant annual rise in Brent crude oil prices compared to September 2025. Additional downward pressure originated from a decline in tourist arrivals and lower electricity production volumes.

While the recent data signals increased resilience in the Cypriot economy, analysts warn that geopolitical instability and volatile global energy costs continue to pose significant risks to long-term economic growth. The ongoing recovery follows a period of contraction, with the index having previously recorded a negative growth rate of -0.29% in July 2026.