Cyprus’s Composite Leading Economic Index recorded a modest annual decrease in July 2026, continuing its negative trajectory but at a slower pace. The latest figures point to a moderation of downward trends, although short-term challenges remain amid heightened external and geopolitical pressures.
Annual decline eases
The Composite Leading Economic Index, compiled by the University of Cyprus’s Economics Research Centre, fell by 0.43% year on year in July, according to the latest revised data.
Although the annual change remained negative, its gradual easing indicates that the index’s decline is becoming less pronounced.
Economic sentiment weakens
The weighted Economic Sentiment Indicator deteriorated compared with July 2025, mainly reflecting weaker sentiment across all sectors of the Cypriot economy.
Brent crude oil prices also rose on an annual basis, while tourist arrivals remained below their level in the corresponding period last year.
Domestic activity limits losses
Property sales, retail trade and electricity production made a positive contribution to the index’s annual growth rate, partly offsetting pressure from its other components.
The supportive domestic indicators included:
- Property sale contracts
- Transactions using Cyprus-issued credit cards
- The retail sales volume index
- Temperature-adjusted electricity production
Overall, the slower annual decline suggests that negative trends are stabilising, but does not remove the short-term challenges facing the Cypriot economy.
