Nicosia, Cyprus. Cyprus’ Composite Leading Economic Index remained in negative territory in June 2026, recording a year-on-year decline of 0.65 per cent, according to estimates published by the Economics Research Centre of the University of Cyprus. The centre said the latest reading showed another annual decline, although the pace of deterioration moderated.
June reading remains below year-earlier level
The Economics Research Centre of the University of Cyprus said the June 2026 reading followed similar year-on-year declines in previous months, indicating that external pressures continue to affect the short-term outlook for the Cypriot economy.
According to the report, the negative annual performance mainly reflected persisting external pressures and subdued economic activity in conditions of heightened geopolitical uncertainty.
Confidence and external factors weigh on index
A key factor behind the weaker reading was the weighted Economic Sentiment Indicator, which combines confidence levels in Cyprus and the euro area and remained below its level of June 2025.
The report said this was mainly due to weaker business and consumer confidence in Cyprus.
Brent crude oil prices also remained higher on a year-on-year basis, while the temperature-adjusted volume of electricity production and tourist arrivals both posted annual declines, adding further downward pressure to the index.
Areas of resilience limit deterioration
The report also identified indicators that helped contain the overall decline.
Cypriot credit card transactions, the retail sales volume index and property sales contracts all contributed positively to the index’s year-on-year performance, offsetting part of the negative impact from the remaining components.
Short-term challenges persist
The latest report indicated that the Cypriot economy continues to face short-term challenges, largely because of the uncertain international economic and geopolitical environment.
