The continued positive year-over-year growth rate of the Cyprus Composite Leading Economic Index in April 2023 reinforces the economic forecasts for 2023 according to which the Cypriot economy will record a slowdown in its positive year-over-year growth rate, however, it will not enter a recession, the Economics Research Centre (ERC) of the Department of Economics, University of Cyprus says.
The CCLEI recorded a year-over-year increase of 1.6% in April2 2023, following the year-over-year increase of 0.6% and year-over-year decrease of 0.6% recorded in March and February, respectively, based on recent and revised data.
The reported positive year-over-year growth rate in April reflects the positive performance of most of the CCLEI's domestic and international components in April 2023, compared to April 2022. More specifically, the international price of Brent Crude contributed to the rise of the CCLEI, whose year-over-year growth rate continued to be negative.
Also, according to ERC, April tourist arrivals this year exceeded not only the corresponding arrivals of last year, but also of the pre-pandemic year 2019. At the same time, the acceleration recorded in the year-over-year growth rate of the remaining domestic components further strengthens the increase of the CCLEI.
Finally, ERC notes that, while the Economic Sentiment Indictor (ESI) in Cyprus recorded positive year-over-year growth rates in March and April 2023, the ESI in the euro area continues to record negative year-over-year growth rates, reflecting the global economic and geopolitical uncertainty and curbing the upward trend of the CCLEI.
Source: Cyprus News Agency