Cyprus’s Economic Indicator Records Further Drop in April
CLEI records further decline of 1.72% in April
The Composite Leading Economic Index (CLEI) of Cyprus recorded a further deterioration in April 2026, marking a year-on-year decrease of 1.72%, according to an announcement by the Economics Research Centre (ERC) of the University of Cyprus. This decline follows a marginal year-on-year contraction in March, which came after a 0.82% year-on-year increase recorded in February.
According to the Economics Research Centre, the further deterioration of the Index primarily reflects unfavorable developments in its key components, amid an environment of heightened geopolitical and external economic pressures.
Specifically, the economic sentiment in the euro area and particularly in Cyprus deteriorated in April 2026 compared to April 2025, leading to a year-on-year decrease in the weighted Economic Sentiment Indicator. Concurrently, the price of Brent crude oil recorded a larger year-on-year increase in April, following the year-on-year rise that had already occurred in March.
A negative contribution was also made by tourist arrivals, which, according to the announcement, were affected by flight cancellations and potential fuel shortages, resulting in a significant year-on-year decline in April.
Conversely, a positive contribution to the year-on-year growth rate of the CLEI came from the temperature-adjusted volume of electricity production, property sale contracts, credit card transactions, and the retail sales volume index.
The Economics Research Centre notes that the year-on-year decline of the CLEI in April indicates a weakening of the Cyprus economy's growth momentum in the short term, within an environment of increased geopolitical tensions and intensifying external economic pressures.
The CLEI of Cyprus is designed to provide early warning signals regarding turning points in economic cycles, meaning shifts in Cypriot economic activity.
The Index is composed of leading variables whose changes tend to precede changes in overall economic activity. These include the price of Brent crude oil, the Economic Sentiment Indicator in Cyprus and the euro area, property sale contracts, tourist arrivals, Cypriot credit card transactions, the retail sales volume index, and the temperature-adjusted electricity production volume index.
