Filenews 20 October 2024 - by Theano Thiopoulou
The satisfactory pace of recovery and good macroeconomic indicators do not appear from official data to have the same impact on all citizens of Cyprus, resulting in a different level of prosperity.
Eurostat's "Key Data on European Living Conditions – 2024 edition" report highlights the inequalities that exist at local and European level, as every time growth and well-being data is published, complaints surface that a large proportion of households cannot make ends meet and are at risk of poverty and social exclusion.
The data presented by "F" show the whole picture, with the great social and economic inequalities in Cyprus and Europe. The picture becomes even greyer if the standard of living of households in Cyprus is compared to the countries of the European north. Cyprus stands out positively if the comparison is made with some Baltic countries.
Purchasing power
Cyprus is below the average of the 27 EU countries (19,955 units) in terms of citizens' purchasing power, having 18,873 purchasing power units.
The median equivalised disposable income, expressed in Purchasing Power Standards (PPS) per inhabitant, is a very important measure of income distribution and determines the extent to which individuals have equal access to goods and services produced in a national economy.
The median equivalised income of a population is the level of income at which half of the population has a higher income and the other half a lower income.
In 2023, the median annual disposable income in the EU-27 was 19 955 (PPS) per inhabitant.
Citizens' purchasing power varies considerably between EU countries: western and Nordic EU countries reported the highest levels and southern, eastern European and Baltic countries reported the lowest.
In Luxembourg, purchasing power standards are 47,636, Austria 31,443, Netherlands 29,249, Sweden 27,250, Finland 27,346, France 24,179, Germany 26,274, Belgium 28,997, Italy 19,819, Slovakia 19,214, Cyprus 18,873, Estonia 15,128, Lithuania 11,284, Latvia 11,258, Croatia 9,973 and Greece 10,050. Close to the purchasing units of Cyprus are Spain 18.316, Malta 18.940, Slovenia 18.053.
Disposable income
Another interesting fact of the Eurostat report is the finding that, compared to 2010, in real terms disposable income across the EU was 18.5% higher in 2023.
Average income was lower in 2023 than in 2010 in 5 EU countries: Greece (-28.4%), Cyprus, France (both -1.8%), Italy (-1.0%) and Spain (-0.3%). In contrast, median income increased most strongly in Romania, by 140.4%.
Many of us are struggling
23.2% of households in Cyprus had some difficulty making ends meet in 2023, 27.1% make ends meet fairly easily, 18.2% of households make ends meet easily and only 6.8% of households make ends meet very easily. In the EU-27, the percentage of households struggling to make ends meet is 26.3% and 5.8% is very comfortable without experiencing difficulties. In other countries: 15.6% of households in Belgium are struggling in Germany, Germany 12.1%, Estonia 31.6%, Ireland 33%, Latvia 34%, Luxembourg 17.9%, Sweden 13.7%, Finland 17.7%, France 19%, Portugal 35.7%.
In-work poverty too
The risk of poverty is not limited to people in insufficient work or without employment. In 2023, 8.3% of workers aged 18 and over in the EU were at risk of poverty. This share was significantly lower for women (7.4%) than for men (9.1%).
Among EU countries, the highest shares of people in work and at risk of poverty in 2023 were 15.3% in Romania and 14.8% in Luxembourg. In contrast, the lowest rate was 2.8%, observed in Finland. In Cyprus, the share of people in work and at risk of poverty was 7.4% in 2023.
Problem in ages 64 and over
Across the EU, the risk of poverty or social exclusion in 2023 was highest among children (people under 18) and lowest among those aged 65 or over.
In Cyprus the problem of poverty is highest (24.8%) at the age of 65 and over, while at the age of 18 to 64 the rate drops to 14.8%.
In around half of EU countries, the share of people at risk of poverty or social exclusion in 2023 was highest for children. In Slovakia and Spain the rate for children was above 8%, in Denmark and Finland people of working age (18 to 64 years) faced the highest risk of poverty or social exclusion.
In 11 EU countries, the share of people at risk of poverty or social exclusion was highest for older people. In Croatia the rate is 35.8%, in Latvia 41.6%, in Lithuania 38.7%, in Estonia 47%, in Greece 23.9%, while the lowest percentage is recorded in France 14.7%, Italy 19.2%, Luxembourg 11%, Netherlands 13.5%, Finland 14.2%, Sweden 14.3%.
People with disabilities are most at risk
The level of disability can be combined with various indicators of income, social and employment. In 2023, the share of people at risk of poverty or social exclusion in the EU was 28.8% among people aged 16 and over with disabilities, compared to 18% among those without disabilities.
In all EU countries, the share of people at risk of poverty or social exclusion in 2023 was higher among people with disabilities, compared to those without disabilities.
The data for Cyprus show that much work is needed to improve the situation, although the picture is similar in many countries.
In 2023, the share of people at risk of poverty or social exclusion in Cyprus was 29.7% among people aged 16 and over with disabilities, which is above the European average.
The percentage of people without disabilities at risk of social exclusion is 13%. In Greece the percentage of people with disabilities at risk of poverty is 30.6%, in Spain 31%, Croatia 35.7%, Estonia 41%, Portugal 26.7%, Slovenia 24.3%, Slovakia 18.6%, Finland 22.2%.
