Cyprus social expenditure lowest in EU

Statistics published by the Statistical Service from Eurostat this week show that expenditure on social protection measures in Cyprus was the lowest in the EU in 2002, at 16.2% of GDP.

This may be as a result of Cyprus’ low unemployment rate–only about 5% on an EU-compatible basis compared with around 10% in the EU25.

However, expenditure appears to be rising, as the figure for 2001 was more than one percentage point less, at 15.0%.

The fact that we have since had presidential elections in 2003 and additional benefits announced over the past two weeks as a sweetener for the parliamentary elections in 2006 suggests that this proportion in 2005 is higher still.

The figures also show that Cyprus spent 7.0% of GDP on pensions in 2002, compared with an EU average of 12.5%.