By Dorita Yiannakou and Panayiotis Rougalas
Cyprus’ economy is thriving, but many citizens are still feeling the pinch and worrying about the future, a new survey shows.
According to the latest K Trends 11 survey, conducted last November by IMR in collaboration with the University of Nicosia and presented by Economic Kathimerini with PwC Cyprus, Cypriots remain concerned about everyday costs, wages, and corruption, despite better economic numbers than the previous decade.
With parliamentary elections just four months away on May 24, 2026, analysts say the government’s handling of economic issues could be decisive at the ballot box. Accuracy, wages, and cost of living make up the “holy trinity” of voters’ concerns, followed closely by corruption.
Household Budgets Top of Mind
The survey shows that daily needs weigh heaviest on Cypriots’ minds. Three-quarters of respondents said meeting household expenses is their biggest worry. Fuel prices and housing costs are also top concerns, with just over half of participants expressing anxiety about covering them. In contrast, lower priorities included phone bills, clothing, and children’s activities.
Although households are spending slightly more on food, with 36% now reporting they spend over €501 per month, citizens appear to be adjusting consumption due to rising electricity costs, with 28% reducing energy use considerably. Travel restrictions due to fuel prices, however, are slightly easing compared with the previous survey.
Support for Low-Wage Earners
The survey also asked about the Automatic Indexation Allowance (AIA), a system designed to adjust wages to keep up with inflation. Seven in 10 respondents said the allowance should target low-wage workers, while nearly half want it extended to all employees. Meanwhile, 30% said public sector employees earning over €60,000 shouldn’t receive it, and only 3% thought it should remain unchanged.
The government recently agreed to restore the AIA to 100% over 18 months, integrating it into the national minimum wage and expanding coverage to more than 55,000 workers, mostly low-income earners.
Tax Reform: Focus on Families, Not Businesses
Citizens also weighed in on tax reform. Over half (56%) said reforms should prioritize low-income citizens and young families, while 37% supported measures to strengthen the middle class. Direct incentives for business and investment ranked much lower, with only 4% listing corporate relief as a priority.
Trust in Institutions Remains Low
Despite economic growth, Cypriots’ trust in government institutions is shaky. Only 11% expressed confidence in the executive branch, and 10% in Parliament. The judiciary also suffers from low public trust, largely due to perceived corruption, while the attorney general received the second-lowest rating among institutions.
Political parties fared worst of all, with just 5% of respondents expressing confidence, a sign that dissatisfaction could strongly influence the upcoming elections. Banks, by contrast, enjoy slightly higher trust, particularly among younger citizens aged 18–24, though older adults remain skeptical.
Digital Media Dominates News Consumption
The survey also highlighted a shift in how Cypriots get their news. Social media is now the top source for 60% of respondents, followed closely by newspapers and news websites at 56%. Television remains important for nearly half, while radio trails far behind at 26%.
Bottom Line
Overall, the survey paints a picture of a country where the economy is growing, but everyday pressures, wages, and corruption continue to weigh on citizens’ minds. With elections approaching, how the Christodoulides government addresses these concerns could make or break its political standing.
*Read the Greek version here.
