Cyprus savings rate declined in 2023, household disposable income grew

The savings rate in Cyprus has experienced a decrease, according to preliminary estimates of key macroeconomic indicators from the national accounts for 2023.

According to the data, the gross disposable income for the entire economy reached €27.98 billion, while gross savings amounted to €3.46 billion.

What is more, the net financing requirement was recorded at €2.99 billion.

The disposable income of households and non-profit institutions serving households (NPISH) increased by 4.9 per cent compared to 2022, rising from €19.74 billion to €20.71 billion.

Additionally, their final consumption expenditure rose by 9.8 per cent in 2023 compared to the previous year, increasing from €17.03 billion to €18.70 billion.

Furthermore, the savings rate, defined as the percentage of gross savings relative to the gross disposable income of households and NPISHs, stood at 9.9 per cent, down from 12.1 per cent in 2022.

In contrast, the investment rate for non-financial corporations, calculated as the percentage of investments relative to the gross value added in the non-financial corporate sector, rose to 19.8 per cent compared to 17.7 per cent in 2022.