Cyprus’ Composite Leading Economic Index (CCLEI) continued to slow down in March, reflecting the impact of the war in Ukraine and the international sanctions on the short-term growth prospects of the Cypriot economy.
The CCLEI, compiled by the University of Cyprus’ Economic Research Centre (ERC) in collaboration with Hellenic Bank, in March rose by an annual 11.3%, reaching a level of 115.4, after year on year increases of 14.2% in February and 15.3% in January 2022 (based on recent and revised data).
“Although the Cypriot economy showed signs of recovery from the pandemic crisis, the slowing growth rate of the CCLEI in February and March 2022 reflects the impact of the consequences triggered by the Russia-Ukraine war and the international sanctions against Russia into the short-term development prospects of the Cypriot economy,” the ERC said.
According to the ERC, the jump in the Brent Crude oil price in March 2022 to historically high levels contributed to the slowdown in the positive year-over-year growth rate of the CCLEI in March, while, although the Economic Sentiment Indicators (ESI) in Cyprus and the euro area strengthened in March 2022 compared to last year, the deterioration of consumer confidence combined with the weaker improvement in all other business sectors restrained the CCLEI.
CLLEI growth was also obstructed by the retail sales volume which dropped in February and rose slightly in March based on preliminary data, whereas the expected slowdown to the growth rate of tourists’ arrivals in March, due to the war, also contributed to the CCLEI’s slowdown.
In contrast, the temperature-adjusted volume of electricity production, the value of credit card transactions, and the total number of property sales contracts continue to positively bear the CCLEI, recording an acceleration in their growth rate in March 2022 compared to last year, the ERC added.
Source: Anadolu Agency