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Income inequality for Cyprus close to EU average

05/07/2022 07:58

A Eurostat rate used to measure income inequality was close to the European Union average in 2020, according to data released by the statistical service of the EU.

As noted in a Eurostat press release, the way income and wealth are distributed across society determines the extent to which individuals have equal access to the goods and services produced within a national economy.

Income distribution can be measured through the median equivalised disposable income (further disposable income) expressed in purchasing power standard (PPS) per inhabitant.

In 2020, the median disposable income averaged 17,871 PPS per inhabitant in the EU. It varied considerably across the EU Member States and ranged from 28,675 PPS in Luxembourg, to 7,724 PPS in Romania.

The median disposable income in Cyprus was at 18,305 PPS, slightly above the EU average in 2020. The median has gradually increased since 2005 when data were first reported for Cyprus at 14,776 PPS.

The median fluctuated around 18,000 PPS between 2007 and 2010, and reached its highest point in 2011 (19,162 PPS), before dropping significantly in 2013 (17,165 PPS) and 2014 (15,762 PPS). The median has been increasing steadily since.

The highest levels of median disposable income were recorded in Western and Nordic EU member states, such as Luxembourg (28,675 PPS), Germany (24,212 PPS), Austria (23,334 PPS) and Belgium (22,294 PPS).

On the other hand, the median disposable income was lower in most southern and eastern member states, such as Romania (7,724 PPS), Bulgaria (8,647 PPS), Hungary (9,699 PPS) and Slovakia (10,076 PPS).