Growth for the few, inequality for the many

 

26 October 2026, AKEL C.C. Press Office, Nicosia

The Cyprus economy is recording growth and budget surpluses. At the same time, however, income inequalities in our country are growing. Economic growth is not translating into a corresponding improvement in the standard of living for the vast majority of the population, and the wealth generated is not being distributed amongst those who produce it.

The latest Eurostat figures are revealing. The Gini index, which measures inequality in income distribution, rose for the third consecutive year, reaching 31.2 in 2025, up from 30.1 in 2024. Cyprus now ranks among the five EU countries with the greatest income inequalities, at a time when the European average is actually falling.

This situation is the result of the policy being implemented by Nikos Christodoulides’ administration, which is continuing along the same lines as the DISY-Anastasiades government. Policies that lead to the concentration of wealth in the hands of the few, maintain tax privileges for accumulated wealth and very high incomes, whilst reserving piecemeal measures and inadequate social support for the overwhelming majority.

The real progress of an economy is not measured solely by growth rates and budget surpluses, but also by the extent to which people’s lives are improving.

What the country needs is a readaptation of economic policy priorities, with a fairer redistribution of wealth, higher wages and stronger collective agreements, tax justice and a substantial strengthening of the welfare state.