Real household income per capita across the EU and euro area rose by 0.1% in the second quarter of 2026, while real consumption increased at a faster pace. The latest figures from Eurostat show modest quarterly income growth alongside a longer-term rise in household gross disposable income, including in Cyprus.
In Cyprus, gross disposable income for households and non-profit institutions reached €22.97 billion in 2025, up from €16.04 billion in 2020.
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Household Spending Outpaces Income Growth
Real household income per capita in the euro area increased by 0.1% for a second consecutive quarter. Real consumption per capita rose by 0.3%, recovering from no growth in the first quarter.
Across the EU, real income per capita also grew by 0.1%, down from 0.3% in the previous quarter. Consumption increased by 0.4%, following a 0.1% decline in the first three months of the year.
As the figures are adjusted for inflation, they reflect changes in household income and spending in real terms.
What Drove Income Changes?
Net property income and other net current transfers were the main contributors to real household income growth in the euro area. Across the EU, the largest positive contributions came from employee compensation and social benefits other than social transfers in kind.
However, other components limited growth. Gross operating surplus and gross mixed income had the largest negative impact in the euro area, while current taxes and net social contributions weighed most heavily on household income across the EU.
Household Saving Rates Edge Down
The share of income that households saved declined in the second quarter, falling by 0.2 percentage points in the euro area and 0.3 points across the EU.
Among member states with available data, saving rates increased in four countries and fell in 11. Poland and Czechia recorded the largest rises, at 0.6 percentage points each. Finland saw the steepest decline, at 1.6 points, followed by Hungary at 1.4 points and Italy at 1.2 points.
Household investment rates changed little. The rate remained stable in the euro area and decreased by 0.1 percentage points in the EU. Hungary recorded the largest increase among the countries covered, at 0.7 points, followed by Czechia at 0.3 points. Ireland saw the largest decline, at 0.7 points, while Italy’s rate fell by 0.3 points.
Cyprus Disposable Income Rises For Five Consecutive Years
Cyprus recorded steady annual growth in gross disposable income between 2020 and 2025. The total rose from €16.04 billion in 2020 to €16.80 billion in 2021 and €18.08 billion in 2022.
Growth continued in subsequent years, with income reaching €19.62 billion in 2023 and €21.54 billion in 2024 before climbing to €22.97 billion in 2025.
EU And Euro Area Income Totals Continue To Grow
Gross disposable income also increased across the EU and euro area over the same period.
Across the EU’s 27 member states, the total rose from €8.55 trillion in 2020 to €9.74 trillion in 2022, exceeding €10 trillion in 2023. It reached €11.11 trillion in 2024 and €11.49 trillion in 2025.
In the 21-country euro area, gross disposable income increased from €7.49 trillion in 2020 to €8.45 trillion in 2022 and €9.10 trillion in 2023. The total then rose to €9.57 trillion in 2024 and €9.84 trillion in 2025.
The annual figures point to sustained growth in gross disposable income across Cyprus, the EU and the euro area. However, the latest quarterly data show that real household income growth remains modest, even as consumption increases and saving rates edge lower.
