**Nicosia, Cyprus** – The Cypriot economy is exhibiting a degree of resilience, navigating a complex global landscape with a Composite Leading Economic Index (CCLEI) that continues its upward trajectory, albeit at a slightly moderated pace. Data released for November by the Economics Research Centre (CypERC) of the University of Cyprus reveals a mild acceleration in the annual growth rate of the CCLEI, signalling a sustained positive economic momentum. Concurrently, the overarching Economic Sentiment Indicator (ESI-CypERC) remained largely unchanged, reflecting a nuanced picture of business and consumer confidence, with particular divergences across key sectors.
While the broader economic climate appears to be cautiously optimistic, the November figures for the ESI-CypERC indicate a plateau rather than a significant surge. The slight dip in overall sentiment was primarily driven by a deterioration in the outlook for the services sector, where firms reported less favourable views on their recent turnover. However, this contraction was effectively counterbalanced by notable improvements in other crucial areas of the Cypriot economy. The retail trade sector witnessed an uptick in confidence, buoyed by favourable stock levels and positive expectations for both current and future sales. Similarly, the construction industry experienced gains, with businesses reporting stronger order books and more optimistic employment projections. The industrial sector also contributed to the overall stability, showing enhancements in current order books and production expectations. Furthermore, consumer confidence demonstrated an upward trend, with individuals expressing more positive sentiments regarding their personal financial situations, future economic prospects, and intentions to undertake significant purchases.
A particularly encouraging development highlighted in the report is the further abatement of economic uncertainty. The Economic Uncertainty Indicator registered a decline in November, suggesting a more predictable environment for both households and enterprises. This reduction in apprehension was more pronounced among consumers across various income brackets, while business uncertainty remained relatively stable. This easing of anxiety, coupled with positive performance in key economic drivers such as tourist arrivals, retail sales, and property sales contracts, and a decrease in Brent crude oil prices, has underpinned the CCLEI's continued growth. The only notable counteracting factor to the CCLEI's positive momentum was a downward trend in electricity production volume.
In parallel to these economic indicators, the professional services landscape in Cyprus is also undergoing a leadership transition. PwC Cyprus has announced Andreas Yiasemides as its next chief executive, elected by the firm's 35 partners. Yiasemides is set to assume his new role on July 1, succeeding Philippos Soseilos, who will hand over the reins on June 30. Soseilos, who is slated for retirement at the end of 2026, expressed his full confidence in Yiasemides's capacity to lead the firm to future successes. Yiasemides, in his inaugural statement, emphasised a commitment to innovation, human capital development, and fostering robust client relationships, stating, "Amidst conditions marked by substantial challenges yet also abundant opportunities, we will continue investing in innovation, our people, and in building strong relationships of trust, offering high-quality services and solutions to our clients." This leadership change signifies PwC Cyprus's strategic focus on maintaining its preeminent position within the professional services sector.
The prevailing economic sentiment, therefore, presents a multifaceted picture. The CCLEI's sustained positive growth rate, recorded at 1.8% in November, suggests that the Cypriot economy is maintaining its upward trajectory, even as it grapples with an environment characterised by heightened global uncertainty and geopolitical complexities. The flat ESI, however, underscores a period of adjustment, with the services sector facing headwinds while other industries and consumers collectively contribute to a more stable, albeit not dramatically expansive, outlook. The diminishing economic uncertainty, meanwhile, offers a welcome respite, potentially paving the way for more confident investment and consumption decisions in the coming months.