Non-Cypriots Overrepresented In Top And Bottom Wage Groups: A Closer Look At Wage Dynamics In Cyprus

by THEFUTURE.TEAM

October 14, 2025

Overview Of Wage Growth And Disparity

The Cypriot labor market is experiencing notable changes as the average gross monthly earnings have risen by 5.1 percent, reaching €2,483 in 2024, according to Cystat. However, while the overall increase paints an encouraging picture, the gap between the average and median wages—€1,881—signals persistent inequality. This discrepancy indicates that higher salaries are inflating the average, leaving many workers earning significantly less.

Sectoral Variations And Economic Activity

The detailed report unveils varied trends across economic sectors. In agriculture, forestry, and fishing, the lowest average earnings were recorded at €941, whereas the financial and insurance sector led the pack with an average of €4,710. The information and communication technology (ICT) sector saw a remarkable wage increase of 8.1 percent, and comparable gains were observed in human health, social work, water supply, and waste management activities. Even traditionally steady sectors such as manufacturing, construction, and wholesale trade registered double-digit earnings adjustments, reflecting a wide spectrum of growth across industries.

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Disparities Between Cypriot And Non-Cypriot Earnings

One of the report’s most striking revelations is the disproportionate representation of non-Cypriot workers in both the lowest and highest wage brackets. For instance, while the average gross monthly earnings for Cypriot employees reached €2,506 with a median of €2,053, non-Cypriots earned an average of €2,434 and a markedly lower median of €1,544. The earnings gap is further underscored by sector-specific differences: non-Cypriots in fields such as ICT and education often command significantly higher wages compared to their Cypriot counterparts, yet they are equally represented among those with earnings below €1,500 per month.

Implications For Policy And The Labor Market

The report’s insights into wage structures and demographic distinctions offer a critical perspective for policymakers and business leaders. The overrepresentation of non-Cypriots in both the upper echelons and the lower end of the wage spectrum highlights the complexities of labor market segmentation. Such disparities could prompt renewed debates about labor equity, integration policies, and the need for targeted interventions aimed at reducing wage inequality. As Cyprus continues its upward trajectory in average earnings, addressing these imbalances will be essential to fostering a more inclusive economic landscape.

Conclusion

The latest figures from Cystat illuminate both progress and challenges in the Cypriot wage landscape. While wage growth is apparent across sectors, the uneven distribution of earnings—further exacerbated by significant discrepancies between Cypriot and non-Cypriot workers—calls for a more nuanced understanding of labor market dynamics. The data underscore the need for strategic policy measures to bridge the gap between different worker demographics and ensure that growth benefits are broadly shared across the entire workforce.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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