Poverty in Cyprus

Poverty in Cyprus is not well documented, and is not considered a major problem by the Cypriot government. Due to strong kinship bonds among extended families, poverty in Cyprus primarily affects those outside kinship networks, such as immigrants, divorcees and singles from small families. One study found a strong correlation between increased poverty and small family size. Poverty is also more likely to affect the elderly than the young.

Statistical indicators and historical trend

A report from the late 1990s (based on the Family Expenditure Survey of 1996–97) found that the Gini coefficient (which indicates income distribution) for Cyprus was about 0.36, and that the most vulnerable groups included the chronically ill, retirees, poorly educated people, and housewives (widows).

Poverty and social exclusion in Cyprus have not changed significantly following Cyprus' entry into the European Union in 2004. According to Eurostat, people at risk of poverty or social exclusion in Cyprus accounted for approximately 23–27%, roughly aligned with the EU average of about 23–26% in the measured period (2004–2012). In 2010, 16% of the population were part of households with income below €10,189 per adult capita, corresponding to 60% of the median income per adult capita. People living in severe material deprivation compromised about 10% of the population.

A 2013 study by Koutsampelas and Polycarpou noted that "Poverty [in Cyprus], according to all indices, falls between 2009 and 2012. However, it increases considerably in 2013 (13.1%–32.9%) and thereafter it stabilizes at rather high levels". Following the 2012–13 Cypriot financial crisis, predictions were made that poverty in Cyprus will significantly worsen, but as of 2014 no conclusive evidence has supported this. The number of people living in severe material deprivation rose to 15%, though the at-risk rate actually dropped from 15.9% in 2008 to 14.7% in 2012.

Unemployment in Cyprus rose from 3.7% in 2008 to 15.9% in 2013, and youth unemployment reached a record 32% that year. The long-term unemployment rate rose more than sevenfold from 0.5% in 2008 to 3.6% in 2012.

Reasons for poverty

One of the cited reasons for poverty in Cyprus is a lack of education, though educational attainment in Cyprus has been rising to surpass the EU average, and therefore the educational attainment issue should become less relevant. Another factor, affecting the elderly, were inadequate pensions for private sector retirees; a 1980 pension reform has produced an as-yet immature system, which is expected to generate higher pension payments in years to come. On the other hand, child poverty in Cyprus has been relatively low.

Government attitude

A 2003 study noted that poverty is not considered a major problem by the Cyprus government. While the Cyprus government have taken steps to alleviate poverty, a lack of reliable statistics has been cited as a factor making assessment of those policies difficult (as of 2003). As of 2013 lack of statistics prevented detailed discussion of poverty in the UN's Human Development Report for Cyprus. There were also concerns that the state's policies are not sufficient to reach extended families, communities, particularly those heavily dependent around failing small family businesses, and immigrants.

In 2013, the Cyprus government has taken steps to reduce disincentives to work.