Cyprus Poverty Risk Steady at 16.7% in 2023

Cyprus Poverty Risk Steady at 16.7% in 2023

Statistics Show Unchanged Rates of Poverty and Social Exclusion

In 2023, the percentage of the population at risk of poverty or social exclusion (AROPE index) remained stable at 16.7%. The proportion of the population at risk of poverty also stayed unchanged at 13.9%.

According to the Income and Living Conditions of Households: Risk of Poverty 2023 survey published by the Statistical Service, 16.7% of the population, or 153,000 individuals, were at risk of poverty or social exclusion. The AROPE index is the main indicator for monitoring the EU's 2030 target on poverty and social exclusion.

Specifically, 16.7% of the population lived in households with disposable income below the poverty line, faced severe material and social deprivation, or had very low work intensity.

The index for 2023 remained at the same level as the previous year, which was also 16.7%. "Therefore, the index remained unchanged in 2023 after a continuous downward trend in recent years," the report states.

According to the Statistical Service, although improvements in recent years have been reflected in both genders, women have historically been in a less favorable position compared to men. In 2023, the index for women was 18.1%, while for men it was 15.3%.

Additionally, the percentage of the population at risk of poverty, defined as having disposable income below the poverty threshold, was 13.9% or 128,000 individuals in 2023, the same as in 2022 (13.9%).

Poverty Threshold

The poverty threshold, defined as 60% of the median total equivalent disposable household income, was calculated at €11,324 for single-person households and €23,780 for households with two adults and two children under 14, marking a 5.7% increase from 2022, where the thresholds were €10,713 and €22,498, respectively.

The median equivalent disposable income (per person) for 2023 was €18,873, up from €17,856 in 2022.

Furthermore, the percentage of the population at risk of poverty before any social benefits and pensions (social transfers) were included in household disposable income was 33.1%.

Including pensions in household disposable income reduced this percentage to 20.0%, and further inclusion of social benefits brought it down to 13.9%.

In 2023, social transfers overall reduced the risk of poverty index by 19.2 percentage points (13.1 points due to pensions and 6.1 points due to social benefits).

Social benefits include the Guaranteed Minimum Income, maternity benefits, child benefits, single-parent benefits, disability benefits, unemployment benefits, elderly care benefits, etc. Pensions include old-age, widow's, orphan's, and disability pensions.

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