Cyprus Composite Leading Economic Index (CCLEI) marked its second consecutive annual gains in May, showing prospects for economic growth following the adverse consequences from the continuing Covid pandemic.
According to a press release, the CCLEI, compiled by the University of Cyprus’ Economic Research Centre (ERC) in collaboration with Hellenic Bank, recorded an annual increase of 9.9% in May 2021 reaching a level of 109.4, following an annual increase of 4.2% in April and an annual drop of 6.0% in March.
“The positive year on year growth rate of the CCLEI in May and April 2021 prescribes the path towards recovery of the Cypriot economy, which, however, still depends on the developments of the COVID-19 pandemic,” it added.
Furthermore, according to the ERC, the positive year-over-year growth rate of the index recorded in May and April 2021 reflects the improved expectations and prospects for economic growth following the strong impact that the Cypriot economy has suffered from the pandemic. Specifically, both the Economic Sentiment Indicator (ESI) in the euro area and the ESI in Cyprus strengthened in May 2021, after the significant improvement they presented in April.
Preliminary data indicate a positive year-over-year growth rate in April and May 2021, both for the volume of electricity production and the volume of retail sales. In addition, positive year-over-year growth rates of the total number of property sales contracts, as well as credit card transactions continue in May 2021. In general, the increase in most of the components of the CCLEI reflects the gradual recovery of the Cypriot economy, the ERC added.
The index is designed to provide early warning signals for the turning points of business cycles i.e., early evidence of the turns in economic activity and comprises of a number of leading economic activity variables whose changes tend to lead the changes in the overall economic activity and which are evaluated on a regular basis.