The Composite Leading Economic Index (CPI) of Cyprus, prepared by the Center for Economic Research of the University of Cyprus with the support of the Hellenic Bank, shows that the Cypriot economy remains on a recovery trajectory despite inflationary pressures and the ongoing challenges of the pandemic.
In particular, the SPO recorded an annual increase of 14.8% in January 2022, reaching 109.4 points, after annual increases of 14.4% in December 2021 and 13.8% in November (based on recent and revised data) .
Most of its domestic and international components contributed to the upward course of the SPOD in January 2022. More specifically, the strengthening of confidence in all business sectors, and especially in the services sector in January 2022 compared to January 2021, strengthened the Economic Climate Indices (ECC) in Cyprus and the eurozone that make up the SPD. In addition, the SPD continues to have a positive effect, recording an increase in January 2022 compared to the previous year, the total number of real estate registrations and the volume of electricity production – adjusted based on temperature. The value of transactions with credit cards. According to preliminary data from January, tourist arrivals and retail sales continue to have a positive effect on the SPD and domestic economic activity. On the contrary, the price of oil (Brent Crude) helps to curb the rise of the SPD in January after recording a significant increase in January 2022 compared to January 2021.
The The conclusion is that the Cypriot economy will continue to move at a positive pace, despite rising oil prices and ongoing pandemic challenges that continue to weigh on growth prospects in the short term.