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The question remains the same as in 2013, when Cyprus officially entered an economic crisis with the closure of the banks and the haircut on deposits: Can the country emerge from this crisis unscathed? Can Cypriot citizens finally begin to overcome all the signs of the economic recession? What do the real numbers tell us?
These are questions that, year after year, await answers that continue to concern public opinion, while they should also be a source of concern for the country’s politicians and economic stakeholders.
At first glance, the latest assessments by international credit rating agencies suggest that the Cypriot economy remains on a stable path, maintaining its investment-grade status. All these international rating agencies recognize Cyprus’s fiscal resilience as well as the continued reduction of public debt.
But is this really the case when we look at the actual figures? Can households consider that they have overcome the difficult economic times and look to the future with optimism?
Because it is one thing for the figures reported by international rating agencies to be positive, and quite another for the citizens of a country to prosper at the same time. This should be the goal of every government. Good figures and positive assessments from international rating agencies are certainly important, but it is worth remembering that a country’s citizens are not merely numbers.
What the Data Shows
According to the latest data from the Statistical Service of Cyprus concerning the Survey on Income and Living Conditions of Households, a significant proportion of the population was at risk of poverty or social exclusion.
Specifically, 17.1% of Cyprus’s population, or approximately 167,000 people in actual numbers, were at risk of poverty or social exclusion. These individuals lived in households with disposable income below the poverty threshold.
In other words, 17.1% of Cyprus’s population was living under conditions that made it difficult to meet basic needs, leaving them economically vulnerable and at risk of poverty.
One particularly important finding of the survey is that women face a higher risk of poverty and social exclusion. Specifically, the poverty rate for women stood at 18.7%, compared with 15.5% for men.
This indicates that women in Cyprus are considerably more economically vulnerable and face a greater risk of falling into poverty than men.
It is worth noting, however, that the poverty rate remained unchanged in 2025 compared with 2024, when the proportion of people at risk of poverty or social exclusion was also 17.1%.
The monetary poverty thresholds for 2025 were calculated at €13,240 for one-person households and €27,803 for households consisting of two adults and two children under the age of 14. It is worth mentioning that the thresholds increased by 6.8% in 2025 compared with 2024, when they stood at €12,400 and €26,039 respectively.
It is also important to note that between 2015 and 2025 there was a gradual reduction in the poverty and social exclusion rate, according to data presented by the Statistical Service.
More specifically, the poverty and social exclusion rates were:
- 2015: 22.8%
- 2020: 18.2%
- 2022: 17.5%
- 2023: 17.4%
- 2024: 17.1%
- 2025: 17.1%
At-Risk-of-Poverty Rate
If we take the analysis one step further and examine the “at-risk-of-poverty” indicator — that is, the percentage of people whose income falls below the poverty threshold — we observe that in 2025, 14.9% of the population had income below the monetary poverty threshold. This represents a slight increase compared with 2024, when the figure was 14.6%.
One point that deserves particular attention is the fact that social benefits and pensions significantly reduce the poverty rate among Cyprus’s population. According to the data, in 2025, the proportion of the population at risk of poverty before social benefits and pensions were included in household disposable income stood at 33.6%. However, once social benefits and pensions were taken into account, the rate fell to 14.9%.
In conclusion, based on the figures presented above, it becomes clear, that while the state’s finances may be performing well, a significant proportion of Cyprus’s population continues to face the risk of poverty and social exclusion.