The year-over-year growth rate of the Cyprus Composite Leading Economic Index (CCLEI) in October 2023 remains positive, albeit decelerating, as reported by the Economics Research Centre (ERC) of the University of Cyprus.

The ERC reveals that the CCLEI, developed by the Centre, registered a year-over-year increase of 1.5% in October 2023. This growth follows increases of 1.9% and 2.1% in September and August 2023, respectively, as per recently updated data.

The report highlights the impact of recent military conflicts in Israel, noting their contribution to the strained international geopolitical environment. These conflicts have adversely affected the CCLEI for October.

More specifically, heightened geopolitical tensions have fueled economic uncertainty. This is evident from the decline of the Economic Sentiment Indicator (ESI) in the euro area, which has deteriorated consistently throughout 2023.

Additionally, the CCLEI's growth is being tempered by the year-over-year decline in the temperature-adjusted volume of electricity production, a trend ongoing since May 2023.

However, the ERC also points out positive factors. The growth of domestic sectors like tourism, retail trade, and real estate, coupled with subdued oil prices, have counterbalanced the negative influences, leading to a positive year-over-year growth rate for the October CCLEI.

In conclusion, the ERC states, "The year-over-year growth rate of the CCLEI in October 2023 remains positive, though it is slowing down. The decrease in the CCLEI's growth rate compared to previous months reflects the prevailing uncertain geopolitical and volatile economic conditions, which inevitably impinge upon the growth prospects of the Cypriot economy."