Cyprus experienced an 18% surge in social protection spending in 2022, according to early estimates released by Eurostat, the statistical service of the EU.
Furthermore, the data reveals that Cyprus also witnessed an expansion in social protection benefits as a percentage of its GDP.
Total expenditure on social protection benefits in the EU surged to 4.307 trillion in 2022, the data show. This reflects a notable 3% increase from the previous year.
Across the EU member states with available 2022 estimates (as reporting remains voluntary), the majority experienced a rise in social protection benefits expenditure. Notably, Malta saw a 5% decrease, while Ireland remained unchanged compared to 2021.
The most substantial increases in national currencies between 2021 and 2022 were observed in Bulgaria (+28%), Cyprus (+18%), and Hungary (+10%). Conversely, Austria saw the smallest increase at 1%, while France, Denmark, Slovakia, Finland, and Germany each recorded a 2% uptick.
Despite the general increase in social protection expenditure in national currencies, when examined as a percentage of GDP, a different trend emerged in 2022. This shift can be attributed to GDP outpacing the growth in social benefits expenditure, indicative of a rebound from the negative impacts of the COVID-19 pandemic.
Overall, social protection benefits expenditure constituted 27.2% of the EU’s GDP in 2022, marking a 1.5 percentage point decline from 2021. Notably, Cyprus, Bulgaria, and Luxembourg defied this trend, witnessing an increase in social protection benefits expenditure as a percentage of GDP. Cyprus recorded a notable 1.4 percentage point increase to reach 23.2% of GDP, Bulgaria rose by 1.2 percentage points to 19.5% of GDP, and Luxembourg saw a 0.1 percentage point increase to 21.6% of GDP.
Conversely, the most significant decreases occurred in Malta (-2.8 percentage points), Austria (-2.6 percentage points), and Denmark (-2.2 percentage points).
Examining the 2022 estimates, social protection benefits expenditure as a percentage of GDP was highest in France (32% of GDP), Austria, and Italy (both 30%). On the other end of the spectrum, Ireland (11%), Malta (15%), as well as Estonia, Lithuania, and Hungary (all 16%) had the lowest percentages.
Across the EU countries with published data, old age and sickness/health care benefits comprised the major portion of social protection benefits.
Other categories included disability, survivors, family/children, unemployment, housing, and social exclusion not classified elsewhere.