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Famagusta Gazette

News From Cyprus

EU Report Warns of Uneven Development in Cyprus Despite Projected Economic Growth

ByFamagusta Gazette

Sep 6, 2025

FAMAGUSTA GAZETTE — The European Commission has forecast that Cyprus’s gross domestic product will grow by 3% in 2025 and 2.5% in 2026, but a newly released EU report warns that the benefits of development are not being shared equitably across the country.

According to the “European Semester Spring Package” cited by the newspaper Haravgi under the headline “Cities Thrive, Countryside Abandoned,” urban centers in Cyprus are advancing rapidly, while rural areas remain stagnant, lacking modern infrastructure and meaningful opportunities for progress.

The report identifies employment as a key indicator of inequality within the Greek Cypriot community. While urban employment rates reach 80.3%, rural areas lag behind at 77.9%. Gender disparities in employment were also noted.

Educational attainment among adults aged 30 to 64 stands at 64.4% nationally, but varies significantly by region: 57% in cities, 46.2% in suburban areas, and just 37.6% in rural zones.

These figures suggest that geographic origin continues to shape access to education and social mobility.

Digital literacy also shows uneven distribution. While 51.4% of the population possesses basic or advanced digital skills, urban areas report a 47.5% rate.

The report notes that rural digital proficiency may be higher, though no specific figure was provided.

Daily life in rural communities is described as outdated, with residents lacking access to essential services. Only 9.4% of rural inhabitants can reach a hospital within 10 minutes, compared to 79.7% in urban areas.

Similarly, 56% of city dwellers live within 15 minutes of a school, while just 18% of rural residents enjoy the same access.

The report concludes that bridging the gap between urban and rural areas will require improved mobility and access to basic services.

However, the concentration of the service sector in cities and the absence of a strategic decentralization plan are exacerbating the imbalance.

Cyprus, the report warns, stands at a critical crossroads: either it will invest in meaningful support for rural regions and pursue socially equitable development, or it will remain locked in a two-speed model that favors privileged urban sectors.

Famagusta Gazette