Thursday, May 23 2024

Cypriot economic activity indicators deteriorate

Cypriot economic activity indicators deteriorate

External geopolitical uncertainty and soaring inflation continue to trouble the Cypriot economy, causing a decline across a number of leading economic activity indicators for the second month in a row, according to a report released this week by the University of Cyprus Economic Research Center.

The report says the Cyprus Composite Leading Economic Index (CCLEI) experienced a year-on-year decrease of 2.4% in July 2022, following a year-on-year decline of 1.5% recorded in June, with the latter month updated to reflect the most recently revised data.

“The ongoing war between Russia and Ukraine, the high inflation, and the growing uncertainty are reflected in the negative year-on-year growth rate of the CCLEI in July 2022,” the report said.

The report noted that the Economic Sentiment Indicators (ESI), both in the euro area and Cyprus, worsened year-on-year in July 2022. There was a particular decline in consumption, where the climate weakened significantly.

The negative ramifications of soaring energy costs are also reflected in the temperature-adjusted volume of electricity production, which was lower in July 2022 than July 2021.

But a number of factors, such as the 39% growth in property sales, the higher of credit card transactions, an increase in the number of tourists and higher sales volume have, to a point, offset the negative effects, the report added. [Cyprus Mail]