One in Five Residents of Cyprus Lives Below the Poverty Line: Problem Persists Despite Economic Growth

About 20% of Cyprus’s population continue to live below the poverty line or are at risk of social exclusion, according to data from the Statistical Service of Cyprus (Cystat). Despite economic growth and rising average wages, the level of poverty remains high and has changed little in recent years.

According to a report published ahead of the International Day for the Eradication of Poverty, approximately 180,000 people on the island live in households with an income below 60% of the national average. This means that many cannot afford even basic necessities — food, heating, and healthcare. Particularly vulnerable are pensioners, single parents, and large families.

The study showed that about half of households in Cyprus are unable to cope with unexpected expenses, and nearly one-third regularly struggle to pay bills. Although the unemployment rate has fallen to 5%, the rising cost of living and higher prices for food, housing rent, and electricity effectively offset income gains.

The Ministry of Labour and Social Security stated that it is considering additional support measures — expanding the minimum guaranteed income program and increasing benefits for families with children. However, experts believe that without deeper reforms in the tax system and labor market, it will be difficult to reverse the situation in the long term.

Economists note that Cyprus faces a clear imbalance: macroeconomic indicators are growing, but inequality and poverty remain consistently high. The situation is particularly severe in rural areas and among workers in low-paying sectors — services, trade, and tourism. Experts emphasize that combating poverty must become one of the key priorities of public policy, otherwise social stratification on the island will only worsen.