Cyprus Gini coefficient rises as income inequality grows

Data released by Eurostat on Friday indicates that income inequality in Cyprus increased in 2025, with the Gini coefficient rising to 31.2 from 30.1 the previous year. This 1.1-point increase stands in contrast to the European Union average, which saw a slight improvement, falling from 29.4 in 2024 to 29.2 in 2025. The Gini coefficient measures inequality on a scale of 0 to 100, where 0 represents perfect equality and 100 indicates absolute inequality.

Cyprus currently holds a higher inequality index than the EU average. Among member states, Bulgaria reported the highest inequality at 37.7, followed by Latvia (35.6), Lithuania (35.5), and Greece (31.6). Conversely, Slovakia recorded the lowest inequality level at 23.0, followed by Belgium (23.4), Czechia (24.0), and Slovenia (24.6). Analysts suggest that the disparity between Cyprus and Northern European countries stems from differing social welfare philosophies, noting that Cyprus remains heavily reliant on a pension-centric model, whereas Nordic states invest more broadly in social support networks throughout all stages of life.

While the statistical trends have been documented, no immediate policy changes have been announced following the release of these figures. The data remains a key point of discussion regarding the sustainability and effectiveness of the current social welfare framework in Cyprus.