Composite Leading Economic Index shows a significant decline

The Cyprus Composite Leading Economic Index (CCLEI, exhibited a Year-over-Year (YoY) decrease of 0.2% in February 2020, reaching a level of 113.1, following a decrease of 1.1% in January, and 2.3% in December (based on the updated data).

According to figures provided by the Economics Research Centre of the University of Cyprus, the improved trend of the CCLEI index observed during the last three months weakens and reverses in view of the coronavirus pandemic in the Cyprus economy.

It is important to note that, the February CCLEI was constructed using data collected prior to the substantial outbreak of the coronavirus pandemic in the Cypriot economy.

The flash estimate of the CCLEI Index for March 2020 already shows a significant decline, reflecting the expected downturn in the economy. The reversal and downward trend of the index foreshadows the imminent significant decline in the GDP due to the very important consequences of the COVID-19 pandemic in most sectors of the Cypriot economy.

In summary, the improved year-over-year trend of the CCLEI index is not only ending but reversing in March 2020 revealing the expected significant impact of the coronavirus pandemic on economic activity in Cyprus.