Cyprus Mail 25 March 2025 - by Kyriacos Nicolaou
Household spending has seen a significant increase, according to the latest Household Budget Survey (HBS) by the Cyprus Statistical Service (Cystat).
Specifically, the service reported that the average annual consumption expenditure per household reached €43,263 in 2023.
This marks a 38.6 per cent rise compared to the €31,206 recorded in 2015-2016.
The increase was evident across both urban and rural areas. In urban centres, the average annual household expenditure stood at €44,548 in 2023, reflecting a 39.7 per cent rise from €31,884 in 2015-2016.
Rural areas saw an increase of 36.2 per cent, with household spending rising from €29,740 to €40,505.
Changes in spending patterns
Spending rose across all major categories of goods and services, except for health, which saw a 26.4 per cent decline.
The reduction in health expenditure is attributed to the implementation of the General Healthcare System (Gesy), which has alleviated some of the need for private medical spending.
Conversely, the most significant increase was recorded in the “Insurance and financial services” category, which grew by 126.5 per cent, mainly due to household contributions to the GHS.
The hospitality sector also saw a substantial rise, with spending on restaurants and accommodation services increasing by 71.5 per cent.
Housing-related expenses, including rent, utilities, and maintenance, climbed by 49.2 per cent.
Food and non-alcoholic beverages accounted for 14.5 per cent of household spending, down from 15.3 per cent in 2015-2016.
Transport costs represented 11.6 per cent of total expenditure, slightly lower than the 12 per cent recorded in the previous survey.
The smallest portion of household budgets was spent on alcoholic beverages and tobacco, which accounted for 1.4 per cent of total spending in 2023, down from 1.6 per cent in 2015/2016.
Survey methodology and sample size
The Household Budget Survey follows the methodology set by the European Statistical Office (EUROSTAT) and aims to capture purchasing trends and consumption habits over time.
The 2023 survey included an initial sample of 4,800 households across all districts in Cyprus.
A total of 2,985 households participated, representing approximately 0.8 per cent of the total number of households in the country.
The survey achieved a response rate of 74 per cent.
Data collection was carried out through face-to-face interviews, with participants using electronic devices to complete the survey.
Additionally, all household members aged 16 and over recorded their daily expenditures over a 14-day period.
