Survey shows one in three households in Cyprus getting by comfortably, one in three barely managing

One in three households in Cyprus is "getting by comfortably" (36%), one in three is "barely managing" (34%) and one in three is "facing more or less a problem of survival" (30%).

These are the figures of an island-wide survey conducted by the Pancyprian Consumers and Quality of Life Association in collaboration with CMRC - Cypronetwork Ltd. The survey results were presented during a press conference in Nicosia.

According to the survey, the income of 66% of households has remained at the same level in the last six months, 18% said that it has increased and 15% that it has gone down, while 90% said that the prices of products have increased during this period.

The aim of the survey was to analyse consumer behaviour and the financial situation of households in Cyprus, as well as to evaluate consumer protection measures by businesses and the state. The survey was presented by President of the Association, Loukas Aristodemou, and Executive President of Cypronetwork, Christos Michaelides.

Concern over financial well-being

Speaking on 26 March, Michaelides said that the survey was carried out in February with the participation of 1,000 persons aged 18 and over living in both urban and rural areas. The majority of participants expressed concern about their financial well-being. Several said that their household situation has deteriorated in the last six months.

According to the results, 66% of participants said that their income in the last six months remained the same, 12% said that it has decreased and 3% that it has decreased by a lot. On the contrary 16% said that their income increased and 2% that it has gone up by a lot.

Regarding household spending, six out of ten said that these purchases remained at the same levels, one in five that they have increased and one in four that they have decreased for the third consecutive year.

At the same time, 90% of the survey participants expressed the opinion that product prices have increased, only 2% that they have decreased and 8% that they have remained the same.

A clear trend of differentiation in consumption habits

According to the Association's Chair, the survey shows a clear trend of differentiation in the consumption habits of Cypriot citizens, and this is because at a time when the prices of products and services are increasing, consumers are forced to adjust their purchases, limiting expenses or seeking more economical options.

More than half of the participants (52%) said they have reduced their spending on everyday goods and services. 86% of the participants said that there is an increase of prices in food and essential goods, 73% said in electricity, 66% in clothing and footwear, 55% in home equipment and 53% in the entertainment sector.

The smallest increase, according to the participants was recorded in telephone and television bills (31%), studies (38%), water (40%) and medicines (41%).

Four in ten participants have a bank loan in the family

Regarding bank borrowing, four in ten participants said that their family has a bank loan, compared to six in ten who said that they do not.

Among households with loans, six out of ten describe the burden of the loan as sufficient or very heavy burden. Moreover, 30% consider their family to be over-indebted, while it is worth noting that 5% believe that they will not be able to meet the payment of the loans and 7% that they probably will not be able to.

Replying to a question about their financial situation in the next twelve months, 56% of the participants believe that it will fluctuate at the same levels, 22% that it will be worse and 15% that it will be better.

Most predicting stable economic trajectory

As regards the country's economic trajectory in the next six months, 43% of the participants said that they believe that it will remain stable, 35% that it will follow a downward trend and 16% that it will have an upward trend.

Compared to previous years, households appear slightly more optimistic. In 2024 and 2023, almost half believed that the country's course for the next six months would be a downward one while only 10% and 8%, respectively, believed that the course would be up.

Price increases concern 63% of participants, 56% are concerned about corruption and 48% about poverty and social inequality. Energy price increases concern 41% of those who participated in the survey, 29% are concerned about crime and violence and 21% about high taxation.

Consumer rights awareness

Asked about their knowledge of their rights as consumers, only 7% said that they know them in great detail, 31% said that they know their rights quite well, 46% that they know them a little and 12% that they are not aware of  them at all.

When asked whether they have experienced incidents in which their rights as consumers have been affected, one in ten participants answered in the affirmative, giving as examples cases of poor quality products, problems with online purchases, different prices at the checkout and on the shelf, defective products, false advertising and cases where a product was not replaced within a reasonable time.

The survey also assessed the consumer protection measures implemented by the state, as well as the way in which businesses handle consumer rights.

The survey showed lack of information among consumers about the services, bodies or associations they can turn to when facing issues related to their rights. Only one in four is aware of the Rapex System and only three in ten are aware of the existence of the out-of-court settlement of financial disputes and the out-of-court settlement of consumer disputes.

The state's approach to citizens

Participants were also asked to evaluate the state's approach to citizens. According to the results, only one in four positively evaluates the Government on issues of transparency, one in five on the issue of the responsiveness of state services during telephone communication, one in three on equal treatment between citizens and approximately the same number believe that there is equality between citizens.

Furthermore, more than half of the participants (57%), believe that it is not at all easy to claim their rights as Cypriot citizens, while 29% respond that it is somewhat easy.

Participants were also asked to determine the degree of importance of specific topics for their everyday life, with eight out of ten putting the best quality of life at the top of their choices, seven out of ten the available personal time, six out of ten the professional career and savings. The least important topics were investments, followed by planning for a home purchase or any other major expense.

(Source: CNA)