Cyprus’ short-term economic momentum weakened further in April 2026 as the Composite Leading Economic Index (CCLEI) compiled by the Economics Research Centre of the University of Cyprus recorded an annual decline of 1.72%, the second consecutive monthly fall. The centre said the drop reflected adverse developments across several components amid heightened geopolitical and external economic pressures, with the economic climate in both Cyprus and the euro area deteriorating year-on-year. Rising Brent crude prices and a significant fall in tourist arrivals — linked to flight cancellations and reported fuel shortages — added further pressure on activity.

Some indicators, however, supported the index, including temperature-adjusted electricity production, real estate sales documents, credit card transactions and the retail sales volume index, which contributed positively to the annual rate. The CCLEI is designed to signal turning points in the business cycle using leading variables such as oil prices, sentiment indexes, tourist arrivals and other activity measures to identify shifts in Cypriot economic activity before broader data are released.