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Cyprus Enterprises Accelerate Digital Transformation With Advanced Connectivity And AI

by THEFUTURE.TEAM

December 5, 2025

Overview Of Digital Advancements

Cyprus enterprises continue to drive a formidable digital transformation, as evidenced by the latest data from the Statistical Service (Cystat). In 2025, businesses across sectors have embraced faster internet connections, broadened the use of artificial intelligence (AI), and increased their reliance on robust business software.

Enhanced Connectivity And High-Speed Internet Adoption

The rapid evolution of digital infrastructure is underscored by key connectivity statistics. An impressive 98.2 per cent of enterprises now have a fixed internet connection, with 87.3 per cent reporting download speeds in excess of 100 Mbit/s – a staggering leap from 44.8 per cent in 2021. Contracted speeds generally occupy the 100–499 Mbit/s range (36.5 per cent), followed by ultra-fast connections of 1 Gbit/s and above (26.2 per cent). Notably, a mere 2 per cent of enterprises continue to operate below 30 Mbit/s.

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Rising Momentum In E-Commerce And AI Integration

E-commerce has gained substantial traction with 23.9 per cent of enterprises receiving online orders in 2024. These orders were primarily placed through websites and apps, with company-managed platforms and marketplace sites recording 17.1 per cent and 14.1 per cent, respectively. Private consumers made up 21.9 per cent of online transactions, while business and public sectors accounted for 10 per cent.

The role of AI is also expanding. In 2025, 9.3 per cent of all enterprises have incorporated AI technologies – a significant rise from 2.6 per cent in 2021. This growth is strongly correlated with enterprise size, as large companies now report a 35.1 per cent usage rate compared to 15.3 per cent in medium-sized firms and 7.7 per cent in small enterprises. Among large organizations, AI adoption surged notably from 13 per cent in 2021.

Business Software And Operational Efficiency

Modern business systems in Cyprus increasingly depend on sophisticated software. Enterprise resource planning (ERP) systems lead with a 41 per cent adoption rate, followed by customer relationship management (CRM) solutions at 33.1 per cent. Additionally, 22.1 per cent of enterprises utilize business intelligence (BI) tools to enhance data analysis and reporting. The adoption of these technologies is more pronounced in larger enterprises, with ERP usage peaking at 82.4 per cent and BI tools employed by 75.3 per cent of large organizations.

Approximately 33.7 per cent of firms rely on in-house teams for data analytics, while 16 per cent opt to outsource these functions, highlighting a preference among medium and large companies for maintaining internal analytical operations.

Environmental Sustainability Through Digital Practices

In parallel with technological adoption, an increasing number of enterprises are integrating ICT tools to mitigate environmental impacts. About 25.4 per cent leverage digital solutions to curb energy consumption, and 22.3 per cent implement practices aimed at reducing material use and boosting recycling efficiencies. When retiring ICT equipment, 68.6 per cent recycle unused devices, 53.2 per cent retain them as spare parts, and 32.6 per cent sell, donate, or return them.

Survey Parameters And Implications

The 2025 survey encompasses 5,232 enterprises with ten or more employees, spanning diverse sectors including manufacturing, construction, trade, transport, hospitality, ICT, real estate, and professional services. Data collection spanned from February to June, offering a comprehensive snapshot of the evolving digital landscape in Cyprus.

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Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

by THEFUTURE.TEAM

December 24, 2025

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

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Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.