Cyprus' robust 11.8% surge in household spending defies EU norms

In 2022, Cyprus experienced a notable 11.8% increase in household final consumption expenditure compared to the previous year, surpassing the EU's overall growth of 4.7%, as reported by Eurostat. This positive trend marked a recovery from the 15.9% decline observed in 2020, following a slight increase of 2.1% in 2019. The EU, similarly affected by the pandemic, saw a drop of 7.9% in 2020 compared to 2019 but rebounded with a 4.8% increase in 2021.

The EU witnessed significant growth in household consumption for goods and services in 2022, compensating for the unprecedented decline in 2020 due to the COVID-19 pandemic. Noteworthy increases were observed in expenditures for restaurants and hotels (33.8%), recreation and culture (14.7%), clothing and footwear (11.5%), and transport (4.7%). However, household consumption decreased for food and non-alcoholic beverages (-3.1%) and alcoholic beverages, and tobacco (-1.0%).

In Cyprus, provisional data indicated substantial growth in various categories in 2022, including expenditures for restaurants and hotels (27.9%), transport (14.1%), clothing and footwear (11.9%), and recreation and culture (11.4%). Increases were also recorded for alcoholic beverages, tobacco (6.1%), and food and non-alcoholic beverages (5.0%).

Despite surpassing pre-COVID levels in 2022, certain EU categories still lagged behind 2019 volumes, notably in transport (-7.8%), restaurants and hotels (-2.4%), and education (-1.5%). This comparison highlights the varying impacts and recovery trajectories within the EU, with Cyprus demonstrating resilience and growth in household consumption.