The Composite Leading Economic Index (CLEI) for Cyprus continued its upward trend in October 2025, marking an annual increase of 2.0%, according to the University of Cyprus Economics Research Centre (CypERC). This steady growth mirrors the same rate observed in September and follows a slightly higher 2.1% rise in August, based on revised data.

The indicator, designed to signal shifts in the economic cycle ahead of time, shows that the Cypriot economy maintains a balanced trajectory despite ongoing global challenges and regional geopolitical tensions.

The positive evolution of the Economic Sentiment Indicator (ESI) both in Cyprus and the euro area played a crucial role in sustaining the CLEI’s growth. Additionally, rising tourist arrivals, robust retail sales, and increased real estate transactions supported economic momentum. The decline in Brent crude oil prices also contributed to improving economic prospects by reducing energy costs and supporting consumer spending.

However, a drop in electricity production, adjusted for temperature effects, acted as a drag on the index’s overall growth rate. This particular component holds significant weight in the CLEI’s composition and partially offset the gains recorded in other sectors.

Despite this negative influence, the index maintained its positive direction for the third consecutive month, signaling continued resilience in the Cypriot economy.

The stable 2% annual growth rate in October underscores that domestic and external factors continue to offer support, even as global economic conditions remain volatile. Analysts at CERC note that this balance between upward and downward pressures points to a period of steady, moderate expansion rather than rapid acceleration.