The Cyprus Composite Leading Economic Index (CCLEI) followed a downward trend on an annual basis in November 2022, reflecting “the continuing uncertainty and slowdown of the European economy which inevitably affects the prospects of the Cypriot economy as well.”
Supporting the Cypriot economy are property sales, the value of credit card transactions, retail sales volumes and tourist arrivals.
Specifically, Cyprus’ CCLEI, which is compiled by the Economics Research Centre (CypERC) of the University of Cyprus, recorded an annual decline of 4.1% in November 2022, following annual declines of 3.8% in October and 3.8% in September 2022 (based on recent and revised data).
More specifically, according to the CypERC, the Economic Sentiment Indicators (ESIs) in Cyprus and the Eurozone recorded a decline in November 2022, compared to the same month in 2021, with the economic climate noting the largest deterioration in the services sector in both Cyprus and the euro area.
At the same time, the negative annual growth rate of the CCLEI, as reported by the CypERC, continues to be affected by the negative annual growth rate of the international Brent crude oil price, recording an annual increase in November 2022 as well.
In addition, it is stated that the Index decline in November is also due to the temperature-adjusted electricity production volume, which has a relatively higher weighting in the Index compared to the rest of it domestic components.
In contrast, according to the CypERC, the acceleration recorded in the annual growth rate of the remaining domestic components of the CCLEI in November restrains the further decline of the Index.
In particular, it is reported that the total number of property sales contracts, the value of credit card transactions, the retail sales volume, as well as tourist arrivals, contribute to the short-term strengthening of the Cypriot economy.
Source: Cyprus News Agency