Cypriot society appears divided into three groups in relation to the economic situation of households. According to the results of a nationwide consumer behavior survey, approximately one in three households states that they are getting by comfortably, another one in three states that they are barely making ends meet, while one in three says that they are facing more or less a problem of survival.
The research, conducted by the Cyprus Consumer and Quality of Life Association in collaboration with the company CMRC – Cypronetwork Ltd, was presented today at a press conference at the Press Center in Nicosia.
According to the survey, the income of 66% of households has remained at the same level over the last 6 months, 18% report increased levels and 15% report decreased levels, while 90% state that product prices have increased during this period.
The aim of the survey was to analyze consumer behavior and the financial situation of households in Cyprus, as well as to evaluate consumer protection measures by businesses and the state. The survey was presented by the President of the Pancyprian Consumer and Quality of Life Union, Loukas Aristodimou, and the Executive President of Cypronetwork, Christos Michaelides.
As noted, some of the main findings of the survey concern the financial situation of households in Cyprus and their expectations for its diversification in the future.
The survey, which was carried out in February, as Mr. Michaelides said, involved 1000 people aged 18 and over living in both urban and rural areas, with the majority of respondents expressing concern about their financial well-being, with several believing that their household situation has worsened in the last six months.
66% of respondents stated that their incomes in the last six months have remained the same, 12% state that they have decreased and 3% that they have decreased a lot, while on the contrary 16% stated that they have increased and 2% that they have increased a lot.
Regarding household purchases, 6 in 10 estimate that they remain at the same levels, 1 in 5 that they have increased and 1 in 4 that they have decreased for the third consecutive year.
At the same time, 90% of survey participants express the opinion that product prices have increased, only 2% that they have decreased and 8% that they have remained the same.
It was noted during the conference that Cypriot society is divided into three, with approximately one in three households (36%) stating that they are getting by comfortably, one in three (34%) that they are barely managing, and one in three (30%) that they are facing more or less a problem of survival.
The survey, as noted by Mr. Aristodimou, reveals a clear trend of diversification in the consumer habits of Cypriot citizens, and this is because at a time when the prices of products and services are increasing, consumers are forced to adjust their purchases, limiting expenses or seeking more economical options. Of those surveyed, more than half, 52%, stated that they have limited their spending on everyday goods and services.
Regarding the sectors that have identified price increases, 86% responded to food and essential goods, 73% to electricity, 66% to clothing and footwear, 55% to home equipment and 53% to entertainment.
The smallest increase, according to the responses of the survey participants, was recorded in telephone and television bills (31%), studies (38%), water (40%) and medicines (41%).
Regarding household borrowing from banks, 4 out of 10 respondents stated that their family has a bank loan, compared to 6 out of 10 who stated that they do not. Among households with loans, 6 out of 10 describe the burden of the loan as a sufficient or very heavy burden. It is noted that of all respondents, 30% consider their family to be over-indebted, while it is worth noting that 5% believe that they will not be able to meet the repayment of the loans and 7% that they probably will not be able to.
Regarding the expectations of Cypriot households for their financial situation over the next twelve months, 56% of those surveyed believe that it will remain at the same levels, 22% that it will be worse and 15% that it will be better.
Regarding the question about the country's economic course in the next six months, 43% of those surveyed said they believe it will remain stable, 35% that it will decline and 16% that it will increase.
It is worth noting that compared to previous years, households appear slightly more optimistic, since for example in 2024 and 2023, almost half believed that the country's course for the next six months would be downward, while only 10% and 8%, respectively, believed that the course would be upward.
Regarding the question of what are the most worrying issues in Cyprus today, at the top of the list are increases in the prices of goods and services with 63%, corruption with 56%, while the top three are completed by poverty and social inequality with 48%. This is followed by increases in energy prices with 41%, crime and violence with 29% and high taxation with 21%.
Regarding the degree of knowledge of their rights as consumers, only 7% state that they know them a lot or very much, 31% of respondents say that they know their rights quite a bit, 46% that they know them a little and 12% that they do not know them at all.
When asked whether they have experienced incidents in which their rights as consumers have been violated, one in ten respondents answered in the affirmative, giving as examples cases of poor quality products, problems with online purchases, different prices at the checkout and on the shelf, defective products, false advertising and cases where a product was not replaced within a reasonable time.
The survey also evaluated the consumer protection measures implemented by the state, as well as the way in which businesses handle consumer rights.
As mentioned, the survey once again reveals the lack of information among consumers about the services, bodies or associations they can turn to when facing issues related to their rights. It is indicative that only one in four is aware of the Rapex System and only three in ten are aware of the existence of the out-of-court settlement of financial disputes and the out-of-court settlement of consumer disputes, it added.
In the survey, respondents were asked to evaluate the state's treatment of citizens. According to the results presented, only one in four positively evaluates the Government on issues of transparency, one in five on the issue of the responsiveness of state services during telephone communication, one in three on equal treatment among citizens and approximately the same number believe that there is equality among citizens.
Furthermore, more than half of those surveyed, specifically 57%, believe that it is not at all easy to claim their rights as Cypriot citizens, while 29% respond that it is somewhat easy.
Finally, the survey participants were asked to determine the degree of importance of specific topics for everyday life, with eight out of ten placing the best quality of life at the top of their choices, seven out of ten the available personal time, six out of ten the professional career and savings. As the least important topics, almost half of the survey participants consider investments, followed by planning for the purchase of a home and some other large expense.
Source: KYPE
