Almost 18% of Cypriot household consumer spending is allocated to housing, water, electricity, and fuels, Eurostat data show.
The figures indicate a slowdown in the growth rate of consumer spending in Cyprus for 2024, in contrast to an acceleration observed across the European Union (EU) and the euro area.
While the EU and the euro area saw an acceleration in consumption growth in 2024, Cyprus experienced a deceleration, possibly reflecting the impact of prior high inflation and cost of living adjustments.
- EU and Euro Area: Consumer spending by households, corrected for inflation, increased by 1.5% in the EU (up from 0.3% in 2023) and 1.3% in the euro area (up from 0.5% in 2023).
- Cyprus: The annual growth in consumer spending was 3.6% in 2024, a notable drop compared to the 6.1% recorded in 2023.
The strongest increases in household consumption across the EU were recorded in Malta (+8.8%), followed by Romania (+5.6%) and Hungary (+5.3%). Finland was the only country to show a declining trend, at -0.5% in 2024.
Expenditure categories and share of GDP
The largest spending category for European households in 2024 remains housing, water, electricity, gas, and other fuels, followed by food/non-alcoholic beverages and transport.
1. Housing, Water, Electricity, and Fuels
Cypriot households allocate a significant portion of their budget to this category, although it is not among the highest in the EU.
- Cyprus Share: 17.8% of total household spending.
- Highest Shares: Czechia (32.1%), Finland (29.6%), and Denmark (28.5%).
- Lowest Shares: Croatia (14.4%), Malta (15.1%), and Latvia (15.8%).
- Greece recorded a share of 21.8%.
2. Food and Non-Alcoholic Beverages
- Cyprus Share: 12.5% of total household spending.
- Highest Shares: Romania (23.1%), Bulgaria, and Latvia (both 20.1%).
- Lowest Shares: Luxembourg (9.3%), Ireland (9.8%), and Austria (10.2%).
- Greece recorded a share of 15.8%.
3. Transport
- Cyprus Share: 12.9% of total household spending.
- Highest Shares: Slovenia (17.0%), Lithuania (15.2%), and Germany (14.2%).
- Lowest Shares: Slovakia (5.8%), Croatia (8.2%), and Czechia (8.5%).
- Greece recorded a share of 13.1% (tied with Portugal and Italy).
Household consumption as a share of GDP
Household consumption remains a large component of Cyprus’s economy.
- Cyprus: Total household consumption spending reaches 61.6% of GDP, making it the fourth highest in the EU.
- Top 3: Greece (75.3%), Croatia (70.5%), and Portugal (61.6%).
The broader European picture shows the continuing effect of the economic recovery, starting from 2022 and persisting through 2024. Spending on categories such as restaurants and accommodation services, as well as transport, continued to rise, although at a slower pace than in previous years. Conversely, a downward trend was confirmed for clothing and footwear, and alcoholic beverages, tobacco, and narcotics.
In 2024, the total spending of households in the EU amounted to 51.8% of GDP, marking a slight decrease compared to 2023 (51.9%) and reversing the rising trend of recent years. This figure is also 2.2 percentage points lower than the 2014 share (54.1% of GDP).
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