In May 2020 the economic sentiment in Cyprus continued its decline – Economic Sentiment Indicator (ESI-CypERC) decreased by another 4.1 points compared to April 2020. In April Cyprus faced the toughest restrictions due to COVID-19 and the island’s record low rating was recorded – it fell by 21.9 points compared to March.

In its reports, the Center for Economic Research of the University of Cyprus, explains that the decline in the economic sentiment indicator was due to the fact that confidence in services and retailing continues to fall while sales volumes did not meet expectations.

Consumers are also uncertain about their personal financial future and the outlook for the economy as a whole, and are less and less motivated for large purchases.

Confidence in construction sector has declined to a slightly lesser extent.