At 17,3% the risk of poverty or social exclusion in Cyprus in 2021
Based on the results of the Income and Living Conditions Survey 2021
Based on the results of the Income and Living Conditions Survey 2021, with a reference financial year of 2020, 17,3% of the population or 154.000 people were at Risk of Poverty or Social Exclusion, according to the Cyprus Statistical Service.
The relevant AROPE indicator is the main indicator for monitoring the European Union's 2030 target on poverty and social exclusion.
More specifically, 17,3% of the population lived in households with disposable income below the poverty line or lived in households with severe material and social deprivation or lived in households with a very low work intensity index.
The index shows a slight improvement compared to the previous year which was 17,6%, continuing the downward trend of recent years. The improvement is reflected exclusively in the percentage of men (15,8%), since the percentage of women has remained approximately at the same levels (18,7%) as in 2020. Over time, women have been kept at a disadvantage compared to men.
At Risk of Poverty (AROP)
The percentage of the population that was at Risk of Poverty, i.e. its disposable income was below the Financial Risk of Poverty Threshold, showed a slight decrease, reaching 13,8% compared to 14,3% in 2020. The highest percentage that the highest this index ever reached was in 2015 with 16,2%. The Financial Risk of Poverty Threshold remained almost flat between 2021 and 2020, at €2021 in 10.011 for one-person households compared to €10.022 in 2020 and at €21.024 for households with two adults and 2 dependent children, compared to €21.047 in 2020.
Index of Severe Material and Social Deprivation (SMSD)
The percentage of the population with Severe Material and Social Deprivation, i.e. the percentage of the population deprived due to economic difficulties of at least 7 of the 13 types of material and social deprivation, decreased to 2,6% in 2021 compared to 3,2% that had reached in 2020. The types of material and social deprivation consist of 7 at the household level, e.g. financial inability of the household to pay its electricity/water bills or loans or could not have adequate heating in the winter or face an extraordinary but necessary expense etc., and 6 on a personal level, e.g. financial inability of the person to spend a small amount of money on himself/herself or participate in leisure activities or meet friends or relatives for drinks/food at least once a month etc.
Very Low Work Intensity Index (LWI)
The percentage of the population aged 0-64 living in households with a very low Work Intensity Index, i.e. the adults in the household worked less than 20% of their total potential in the past year, shows a small increase in 2021, reaching 5,6, 5,3% compared to the 2020% it had reached in XNUMX.
The average annual net disposable income of the household for 2021, with financial reference year in 2020, was € 34.227, showing an increase of 1,1% compared to the previous year which was € 33.862.
Economic inequality is expressed, mainly, with the index of income distribution in quintiles (S80/S20) and the index of unequal distribution of income, Gini coefficient. In 2021, the indicators in question remained approximately at the same levels compared to the previous year. Specifically, the S80/S20 index, which examines the share of the income of the richest 20% of the population to the income of the poorest 20% of the population, reached 2021 in 4,2. That is, the share of income of the richest 20% of the population was 4,2 times higher than the income of the poorest 20% of the population, compared to 4,3 in 2020. The Gini coefficient in 2021 reached 29,4% compared to 29,3% in 2020.