Cyprus composite leading economic index records slight decline in March 2026

The Economic Research Centre of the University of Cyprus reported that the Composite Leading Economic Index (CLEI) saw a marginal annual decline of 0.01% in March 2026. This performance reverses the positive growth trends observed in January and February 2026, which posted annual increases of 1.78% and 0.72% respectively. The center attributes this decline primarily to the ongoing geopolitical conflicts in the Middle East and deteriorating economic sentiment within both Cyprus and the Eurozone. Negative impacts were recorded in the energy sector, specifically due to significant annual increases in Brent crude prices, as well as a decrease in temperature-adjusted electricity production. Tourism was also adversely affected by flight cancellations during the same period. Conversely, positive contributions to the index were provided by real estate sales documents, credit card transaction data, and the retail trade volume index. These data points reflect a broader cooling effect on the Cypriot economy as external pressures mount.