The Cyprus Composite Leading Economic Index (CCLEI), compiled by the Economics Research Centre (CypERC) of the University of Cyprus, recorded a year-on-year increase of 2.9 per cent in February 2025.
This follows year-on-year increases of 2.5 per cent in January 2025 and 2.0 per cent in December 2024, according to the most recently revised data.
According to the research centre, the sustained growth of the CCLEI in February 2025 was driven by all its domestic and international economic components.
Specifically, the index benefitted from the positive year-on-year changes in property sales contracts, tourist arrivals, and the total value of transactions using Cypriot credit cards.
Retail sales volume and the adjusted volume of electricity production, which accounts for temperature variations, also contributed to its growth.
Furthermore, developments in the international components of the CCLEI also contributed positively to its continued growth.
The economic sentiment indices in both the euro area and Cyprus showed year-on-year improvements, while Brent crude oil prices recorded a further decline in February 2025, reinforcing the upward trend of the index.
“In conclusion, the CCLEI maintained its momentum in February 2025, with all domestic and
international leading economic indicators driving its upward trend on an annual basis,” the CypERC stated.
Components of the index
It should be noted that the Composite Leading Economic Index (CLEI) is designed to provide early warning signals for turning points in business cycles.
It offers early indications of shifts in economic activity by evaluating several key economic variables that tend to precede changes in the broader economy.
These indicators are assessed regularly to monitor economic trends.
The CCLEI is derived from a selection of domestic and international leading indicators.
These include the Brent crude oil price (in euros), the Economic Sentiment Indicator (ESI) in Cyprus and the euro area, and the total number of property sales contracts, tourist arrivals in Cyprus.
In addition, the total value of Cypriot credit card transactions, the retail trade sales turnover volume index, and the temperature-adjusted volume index of electricity production are also factored into the calculations.
