Cyprus economic index rises by 0.02% in August

Cyprus’s Composite Leading Economic Activity Index (CCLEI) rose by 0.02% year on year in August 2026. The index is calculated by the University of Cyprus Centre for Economic Research (CypERC); the increase was recorded after several months of decline.

The indicator was supported by domestic components: real estate sale contracts, transactions made with Cypriot bank cards, retail sales volumes and temperature-adjusted electricity generation.

External factors, by contrast, pulled the index down. The centre points to high Brent crude oil prices and a decline in the number of tourists compared with last year.

The Central Bank of Cyprus expects GDP to grow by 2.9% in 2026, compared with 3.8% in 2025, and by 3.1% in both 2027 and 2028. Compared with its June forecast, the estimate for 2026 has been raised by 0.4 percentage points and the estimate for 2027 by 0.2 points. The bank attributes the revision to stronger-than-expected economic momentum and an improvement in tourism in recent months.

CypERC notes that domestic demand and investment continue to support the economy, while net exports will weigh on growth in 2026, primarily because of losses in the tourism season during the first half of the year caused by the conflict in the Middle East. The centre expects tourist flows to recover in 2027–2028, when net exports will once again contribute to economic growth.