According to the 2018 European Union Statistics on Income and Living Conditions (EU-SILC) survey, the poverty threshold is estimated at €9,202. This threshold has increased by 5.8% compared to 2017 due to an increase in the country’s average disposable income. The poverty threshold was reduced to 15.4%, compared to 15.7% in 2017. The improved economic environment, the positive effects on the labour market, and targeted social policy have also had an impact on changing social indicators.
The figures are included in the financial developments of 2019 and prospects of 2020-2022, which are expected to be discussed at the House Finance Committee today, with the budget being discussed in the presence of Finance Minister Haris Georgiades.
With regards to the poverty threshold, it’s not possible to compare with the EU28 average for 2018, as data for all Member States is not yet available. However, over time, it is noted that the poverty threshold in Cyprus was lower than the European Union average, even during the recent financial crisis. It is noted that for 2017, where comparable figures exist, the average poverty threshold in the EU28 was 16.9%, while in Cyprus it was 15.7%.
It is worth noting, however, that the poverty threshold for the whole population fluctuates slightly during the period 2008-2018. For women, however, the poverty threshold fell steeply from 18.1% in 2008 to 15.9% in 2018. What we have seen fall dramatically over the years is the poverty threshold for retirees, from 46.3% in 2008 to 21.4% in 2018.
The poverty threshold or social exclusion is the percentage of the population below the poverty line or living in households with severe physical disabilities or living in households with a very low labour intensity index.
Each person is accounted for only once, even if he/she falls under more than one marker. In Cyprus, this figure is at 23.9% in 2018, down from 25.2% in 2017.