The University of Cyprus' Economics Research Centre (CypERC) reports that the annual growth rate of Cyprus' Composite Leading Economic Indicator (CLEI) continued to decelerate in February 2024, remaining marginally positive. This trend reflects the impact of international economic and geopolitical uncertainties on the CLEI's growth and, consequently, the prospects of the Cypriot economy.

For the first time since February 2023, the Economic Sentiment Indicator (ESI) in Cyprus has recorded a negative annual growth rate.

According to the CypERC, the CLEI in February 2024 maintained a slight positive growth due to "a mild decline in the annual growth rate of the international price of Brent Crude oil and growth in various domestic components of the CLEI in February 2024 compared to February 2023. These include real estate sale documents, tourist arrivals in Cyprus, credit card transactions, electricity production, and a slight increase in the volume of retail sales."

Specifically, the Cyprus CLEI, developed and estimated by the CypERC, recorded an annual increase of 0.1% in February 2024, following annual increases of 0.7% and 1.6% in January 2024 and December 2023, respectively (according to recent and revised data).

"Several major European economies seem to be at risk of entering recession phases, while persistent military conflicts continue in the Middle East, along with the ongoing Russia-Ukraine war (without signs of resolution)," adds the CypERC.

As a result, the negative annual growth rate of the Eurozone's Economic Sentiment Indicator (ESI) continues in February 2024, the report mentions.