Purchasing power: Serbs spend 45% less than Europeans

The purchasing power of the average Serbian household is less than half of the average European one. To be more precise, we spend 45% less than our peers in the European Union.

This is the latest data collated by Eurostat for the year 2016. The only countries that are lagging behind Serbia in terms of purchasing power are Bosnia and Herzegovina, Macedonia and Albania.

In Bulgaria, the purchasing power stands at 53%, in Croatia at 59%, in Romania at 63% and in Slovenia at 75% of the European average. The best ranked are Luxembourg, Germany and Austria.

“The data regarding the purchasing power in Serbia relative to the European Union comes as no surprise. The spending in the last several years dropped by 2 billion EUR. We even buy less groceries, particularly bread, eggs and dairy”, says economy expert, Dragovan Milicevic.

The average income of a Serbian household in 2016 was 59,624 dinars and was less than the overall spending which stood at 60,720 dinars.

“The best indicator of our purchasing power is found in the fact that we need 1.5 average salaries to cover the costs of the average consumer basket. The quality of life can also be ascertained from the fact that we spend over half of our average salaries on fulfilling our existential needs like food, electricity, and heating. Even more alarming is the data that shows that we spend more on alcohol and cigarettes (around 4.5%) than we do on education (1%)”, says economy expert, Sasa Djogovic.

Petar Bogosavljevic from the Consumer Movement says that the position of consumers in Serbia is getting worse by the year. “The authorities have to really take this matter to heart, and start solving this problem. It is absolutely vital to increase salaries in other to increase spending. We have been having a wrong kind of policy for decades now, and it is consumers that are taking the brunt of it”, Bogosavljevic adds.

(Vecernje Novosti, 15.06.2017)



This post is also available in: Italiano

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