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Economic Uncertainty Rises in Cyprus – Economic Sentiment Index Decreases

Published February 25, 2026, 17:01
Economic Uncertainty Rises in Cyprus – Economic Sentiment Index Decreases

In February 2024, the economic climate in Cyprus deteriorated, primarily due to a decrease in business sentiment in the services sector. Simultaneously, economic uncertainty increased among both consumers and businesses, with the exception of the construction sector. The Economic Sentiment Index (ESI) decreased by 1.3 points compared to January, while businesses, although showing less favorable assessments of the current situation, remain optimistic about the next quarter's turnover. Conversely, business sentiment improved in retail trade, construction, and manufacturing, due to positive assessments of the current situation and future prospects. However, consumer sentiment declined as forecasts for household financial situations and intentions for major purchases decreased. Nevertheless, assessments of the current financial situation of households remain positive. A significant increase was observed in the Economic Uncertainty Index in February, after four months of decline. This increase is due to the strengthening of consumer and business uncertainty, with the exception of the construction sector. Consumers and businesses, excluding construction, are finding it more difficult to predict their financial situation. However, the COE emphasizes that economic uncertainty in Cyprus remains relatively low, especially in the services and construction sectors. The overall picture suggests a period of increased uncertainty, but with positive prospects in certain areas of the economy.

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