Cyprus household disposable income climbs steadily since 2020

Household real income per capita rose by 0.1 per cent in the euro area and the European Union in the second quarter of 2026, while household consumption increased in both, according to Eurostat, as figures also show that Cyprus’ gross disposable income for households and non-profit institutions reached €22.97 billion in 2025. The latest seasonally adjusted quarterly data from the EU’s statistical office show that household real income per capita in the euro area continued to grow at the same modest pace as in the first quarter, when it also increased by 0.1 per cent. Household real consumption per capita, meanwhile, rose by 0.3 per cent in the euro area, following a stable reading in the previous quarter. Across the EU as a whole, household real income per capita increased by 0.1 per cent in the second quarter, slowing from growth of 0.3 per cent in the first 3 months of the year. Real household consumption per capita in the EU rose by 0.4 per cent, recovering from a 0.1 per cent decline in the first quarter. The figures provide an indication of how household purchasing power and spending are evolving after accounting for inflation, offering a broader picture of household economic conditions across the bloc. Eurostat said the increase in real household income in the euro area was mainly supported by net property income and other net current transfers. In the EU, the main positive contributions came from compensation of employees and social benefits other than social transfers in kind. However, some components weighed on income growth, with gross operating surplus and gross mixed income making the largest negative contribution in the euro area. Across the EU, current taxes and net social contributions were the largest negative contributors. Household saving rates declined in both the euro area and the EU during the second quarter, suggesting that households were saving a slightly smaller share of their income than in the previous 3 months. The saving rate fell by 0.2 percentage points in the euro area and by 0.3 percentage points across the EU. Among the member states for which data were available, household saving rates increased in 4 countries and declined in 11. Poland and Czechia recorded the largest increases, with both rising by 0.6 percentage points. The steepest falls were recorded in Finland, where the saving rate dropped by 1.6 percentage points, followed by Hungary with a decline of 1.4 percentage points and Italy with a decrease of 1.2 percentage points. Household investment rates showed a more stable picture, remaining unchanged in the euro area while falling by 0.1 percentage points across the EU compared with the first quarter. Among the member states covered by the data, household investment rates increased in 4 countries, remained stable in 6 and decreased in 5. Hungary recorded the largest increase, at 0.7 percentage points, followed by Czechia at 0.3 percentage points. Ireland saw the largest decline, with its household investment rate falling by 0.7 percentage points, while Italy recorded a decrease of 0.3 percentage points. The quarterly figures come alongside longer-term data showing a continued increase in gross disposable income for households and non-profit institutions across the EU, the euro area and Cyprus. In Cyprus, gross disposable income rose from €16.04bn in 2020 to €22.97bn in 2025, according to the figures provided. The total increased to €16.80bn in 2021 and €18.08bn in 2022, before reaching €19.62bn in 2023. It then climbed to €21.54bn in 2024, exceeding the €21bn mark for the first time in the period covered, before rising further in 2025. Across the EU’s 27 member states, gross disposable income for households and non-profit institutions rose from €8.55 trillion in 2020 to €9.00 trillion in 2021 and €9.74 trillion in 2022. It exceeded €10tn in 2023, reaching €10.50tn, before increasing to €11.11tn in 2024 and €11.49tn in 2025. In the 21-country euro area, the corresponding figure increased from €7.49tn in 2020 to €7.85tn in 2021 and €8.45tn in 2022. It rose to €9.10tn in 2023, followed by €9.57tn in 2024 and €9.84tn in 2025. The longer-term data indicate that gross disposable income has risen steadily across all 3 areas, although the latest quarterly figures show that real income growth remains modest and household saving rates have edged down.