Latviski English По-русски
Sunday 18.03.2018 | Name days: Ilona, Adelīna

Household expenditure on consumption exceeds pre-crisis levels in Latvia

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn 2016, household consumption expenditure comprised on average EUR 333 per household member monthly – EUR 17 or 5.4 % more than in 2015.

Considering 0.1 % increase in the consumer prices, consumption expenditure at constant prices rose by 5.3 %, according to data from the Central Statistical Bureau of Latvia.

Out of all households, the highest consumption expenditure was recorded in those located in Riga – EUR 406 on average per household member monthly, which is 4.7 % or EUR 18 more than in 2015.  Household expenditure in urban areas grew by 5.9 % or EUR 20 and reached on average EUR 363 per household member monthly. In rural areas, in turn, household consumption expenditure went up by 4.0 % or EUR 10 and reached on average EUR 269 per household member monthly.

The increase in the consumption expenditure was encouraged by the rise in wages and salaries as well as employment. Compared to 2015, in 2016 net wages and salaries grew by 4.7%, and employment rate rose by 0.8 percentage points.  However, the expenditure increase is comparatively slow, showing that households are spending their resources with caution and making some savings for future challenges. Data of the Financial and Capital Market Commission show that, compared to the year before, at the end of 2016 resident household investments in Latvian banks went up by 9.8 % or EUR 481 million.

The largest share in the total consumption expenditure is still held by the costs on daily needs, i.e., expenditure on food, housing, transport, clothing and footwear, as well as health. The share thereof accounted for more than two thirds (68 %) of the total consumption expenditure. Households spent the greatest proportion (26 %) of the consumption expenditure on food. Expenditure on food on average per household member monthly grew from EUR 84 in 2015 to EUR 87 in 2016.

Compared to 2015, the sharpest consumption expenditure rise was registered in transport costs (11.4 %) in 2016. The increase was mainly affected by the growth in expenditure on operation of and purchase of passenger cars. The second highest growth (of 10.3 %) was observed in expenditure on miscellaneous goods and services, especially on goods and services for personal care. The third steepest increase (9.1 %) was registered in costs on health, mainly pharmaceutical products and outpatient services.

Rise was observed also in expenditure on furnishings and household equipment (of 8.3 %), clothing and footwear (4.8 %), food and non-alcoholic beverages, communication (4.1% each), costs in restaurants and hotels (3.3 %), expenditure on alcoholic beverages and tobacco (3.1 %), housing and dwelling maintenance (2.8 %), and recreation and culture (1.5 %).

Last year, household consumption expenditure at current prices exceeded that of 2008 (of pre-crisis period) by almost EUR 3 per household member monthly. Household expenditure (at current prices) on housing and dwelling maintenance exceeded that of 2008 by EUR 12, expenditure on health – by EUR 6, and expenditure on food and non-alcoholic beverages – by EUR 3. The rise was influenced by the increase in the consumer prices of dwelling maintenance services (of 23 %), health (23 %), food and non-alcoholic beverages (11 %), compared to 2008.

The highest consumption expenditure was still recorded in households of employers and self-employed (EUR 394) and those of wage and salary earners (EUR 347), whereas consumption expenditure in pensioner households was notably lower – EUR 267 per household member monthly. However, compared to 2015, the sharpest consumption expenditure rise was recorded in households of wage and salary earners (5.8 %) in 2016. In its turn, the smallest consumption expenditure growth was observed in households of employers and self-employed – only of 3.6 %.

Data of the Household Budget Survey show – the more children in household, the less it can afford to spend per single person. Consumption expenditure in households with three and more children on average comprised EUR 213 per household member monthly, constituting only 64 % of the average national level of consumption expenditure (72 % in 2015). Households with one child spent on average EUR 300 per household member monthly, while households with two children – EUR 277.  The highest consumption expenditure was recorded in households with no dependent children. In 2016, the consumption expenditure thereof on average accounted for EUR 377 per household member monthly.

Richest households generally were able to spend EUR 379 per household member monthly on food, housing, transport, clothing and footwear, as well as health, while poorest households could spend EUR 133. Compared to the poorest households, richest households spent 6 times more resources on recreation and culture.


Leave a reply

Remembrance day of Latvian Legionnaires passes with shouts and two arrests

The Legionnaires’ remembrance procession in Riga on Friday, 16 March, passed peacefully. Nevertheless, several conflicts did take place among differently-minded people near the Freedom Monument. Two individuals were arrested by police.

Influenza intensity in Latvia – moderate when compared to other European nations

A comparison of influenza activity in Europe shows that it is high or very high in several countries. Latvia’s influenza intensity is considered moderate, as noted by epidemiologist Raina Nikiforova.

Hourly labour costs in Latvia grew 7.3% in 2017

Compared to Q4 2016, in Q4 2017 hourly labour costs rose by 54 cents or 7.3 %, reaching EUR 8.02. Seasonally adjusted data show identical changes – rise of 7.3 %.

Rietumu Banka claims it has not worked with high-risk clients for years

Rietumu Banka has been steadily rejecting high-risk clients for years and has significantly reduced the volume of transactions, as mentioned by the bank’s representatives.

Lithuanian and Estonian businessmen are ahead of Latvia in terms of investments

In Latvia, 36% of small and medium-sized companies have plans to invest in the development of their business this year. In Estonia and Lithuania, on the other hand, the proportion of businesses with development plans is 42% and 46%, respectively, according to results of a recent study performed by SEB Bank.

Russia pledges maximum pressure on UK amid ex-spy poisoning row

Russian top diplomat in the UK has envisaged on Friday, March 16, that the Kremlin would use maximum pressure on London as Moscow insists it has not been involved in the poisoning of a former Russian-British double agent with a Russian-made chemical weapon, as has been found by British investigators.

Latvia’s ministry: Crimea’s annexation is illegal

18 March 2018 will mark four years since the Russian Federation violated Ukraine’s sovereignty and territorial integrity by annexing the Crimean Peninsula and causing military aggression in the country’s eastern region. With its actions the Russian Federation has violated international law and basic principles of international relation, says Latvia’s Foreign Affairs Ministry.

Building gas pipe to Finland, Estonia to organise works for EUR 135 million

Continuing the works on the Balticconnector gas pipeline between Estonia and Finland, the Estonian natural gas network company Elering has stated that around 135 million euros, including a 98-million-euro funding from the European Union, will be invested in the project.

Replacement of cash registers rejected by SRS would cost half a million euros

The State Revenue Service has declined 18,000 cash registers as unfitting for requirements established by the Cabinet of Ministers. Fixing the problems found in them would cost half a million euros, as reported by LNT News.

Latvian Anti-Nazi Committee presented with protest restrictions on 16 March

Administrative District Court has compiled a shortened ruling, in which it rejected Latvian Anti-Nazi Committee’s application and preserved the decision imposed by Riga City acting CEO on 13 March 2018 on establishing restrictions on the planned gathering and protest act for 16 March unchanged.

U.S. introduces Russian sanctions for election meddling and cyber-attacks

Washington has introduced sanctions against 19 Russian individuals and five entities blaming them for attempts to sway the 2016 U.S. election and perceived cyber-attacks.

Slovakian PM Fico replaced with fellow party member

Slovakian head of government Robert Fico has stepped down after the murder of a journalist shed light on corruption in Slovakia, prompting nationwide protests. The long-standing Prime Minister had offered to resign earlier this week if the ruling coalition was allowed to finish its term.

Weekends will be cold and sunny in Latvia; next week will have volatile weather

Starting with Sunday, 18 March, air temperature in Latvia will rise above zero in most of the country, as reported by State Environment, Geology and Meteorology Centre.

Lithuania’s ruling LFGU party remains unscathed by scandals

It seems that, for now, Lithuania‘s ruling Farmers and Green Union has been nearly damage-proof despite the lambasting.

Latvian Civic Alliance: non-government sector should aim towards cooperation

Latvian Civic Alliance has invited the management of Latvia’s Chamber of Commerce and Industry to meet to discuss ongoing cooperation between organizations representing the business sector and the NGO sector.

Saeima rejects National Alliance’s proposal to make 16 March an official remembrance day

Latvia’s Saeima has decided to reject the proposal submitted by the National Alliance on making 16 March an official remembrance day.

43.6% of Latvian households have difficulties with making ends meet

In 2017 the share of households admitting that pay for usual necessary expenses with difficulty or great difficulty constituted 43.6 %, which is 1.5 percentage points more than in 2016.

Saeima voices support for Rail Baltica project’s progression

On Thursday, 15 March, the Saeima made a decision to support Rail Baltica project’s progression. In its decision, the parliament invited Latvia’s Cabinet of Ministers to provide all the necessary support for the project’s successful realization to ensure the project is realized in accordance with established terms and does not lose funding or support from the European Union, as reported by Saeima’s press-service.

Fast snow shovelling linked to cardiac fatalities, Finnish study finds

In Finish doctoral study, it has been concluded that snow should be shovelled calmly, not provoking stress and increased adrenaline in human blood that could lead to cardiac arrest.

Riga’s mayor spent at least eight million euros of residents’ money to promote himself

Over the course of the past three years, at least EUR 8 million of residents’ money has been used to promote the image of the Mayor of Riga Nils Ušakovs. This money was used to buy media, employ young members of Harmony, and finance ‘in-house protestors’ and using social networks, as estimated by Re:Baltica research journalism center.

Slovenia's head of government resigns amid protests and struggling railway investment

The Slovenian head of government Miro Cerar has stepped down from office in reaction to troubles with an expensive railway project and mounting opposition by trade unions.

NAF Commander: Latvia and Estonia have joint military procurements planned

Latvia and Estonia have joint military procurements planned, Commander of Latvia’s National Armed Forces Leonīds Kalniņš told journalists after his meeting with Commander of Estonia’s Defence Forces Riho Terras.

Estonia's switch to free higher education proved right choice, says Ratas

The switch to free higher education made by Estonia in 2013 has proved to be the right choice for a small country, even though critics have pointed to potentially less motivated students, has stated the Estonian Prime Minister Jüri Ratas.

President: we will not give away our scientists’ ideas for free

It is necessary to concentrate all resources on research performed by Latvian scientists with patent potential. This will help secure returns for Latvia’s national economy, said President of Latvia Raimonds Vējonis during his meeting with rector of Riga Technical University Artūrs Zeps.

Members of the European Parliament propose avoiding «trade wars»

MEPs emphasized in debates regarding the trade restrictions imposed by USA that European Union should not get involved in a trade war, and be ready to protect its citizens, as BNN was told by EP Information office in Latvia.

Newest comments