Bulgarians are getting richer – Money

“We can summarize that according to the figures of the National Institute of Statistics for the average values ​​of consumption, income and standard of living we are rich. Of course, the feeling of some people is that on the contrary – their opportunities are decreasing, this is a strictly individual category. However, the statistics show that we Bulgarians are improving our economic situation unconditionally”. This is what the economist and financier Rumen Galabinov told radio “Focus”.

Galabinov commented on the statistical data from NSI, presented by Dr. Desislava Dimitrova, head of the Department “Statistics of Living Conditions”, Directorate “Demographic and Social Statistics” at the National Statistical Institute.

Wealth inequality in our country remains high

“Purchasing power of households represents the amount of goods that can be bought on average per person in the household. The numbers show that increases this ability for most foods in 2023 versus 2022. In the case of oils, it has increased by about 16%, in the case of ripe beans – 16.5%, in the case of bread – 15%. People can buy more and more goods and services,” presented data from the institute’s latest study, Dr. Dimitrova.

“We observe that there is an increase in spending as a relative share of total household spending. The Bulgarian spends the largest sums on food and soft drinks – 29.7%. Next are the costs of 12% for water, electricity and household needs, 7% for transport, we have an increase in health care costs by 11.7%,” reported Dr. Dimitrova.

“In 2023, 87.9% of households in Bulgaria will live in their own home. 7.8% live in an apartment without paying rent. 4.3% of observed households live on rent, about 9% of households have a second home. The research shows about 2.1-2.3 people on average who live in one household,” the NSI also stated.

Wage growth is slowing

“Life has become more expensive, but incomes are also growing. The National Statistical Institute released data on inflation for the period from March 2023 to March 2024, the conclusion is that inflation is around 3% on an annual basis. The harmonized index of consumer prices is 3.3% – i.e. the increase in prices is slowing down,” reported Rumen Galabinov in turn.

“NSI shows us that for last year in the last quarter we have an increase in all indicators of consumption – individual and in general. Over this period, the house price index rose by 10.1% – clearly there is demand. This also drives the growth of the economy. Data for the last 10 years have also come out, in which it can be seen that in Bulgaria we are seeing a 2-fold increase in purchasing power for this time period,” Rumen Galabinov also noted.

Bulgaria is at 60% of the average levels of purchasing power parity in the Eurozone, to which we strive, the financier shared. “Our membership in the EU has helped the process of accumulation in the economy of a resource that also enters consumption in the form of public and individual consumption. The income is also a function of the support from the European funds. We implement opportunities related to the common European market – free movement and trade. It remains to finally become part of Schengen by land, and this will complete our integration into the EU. This will allow us to reap more fruits from our membership”, the expert is convinced.

“Most people who feel poor, dissatisfied, look for culprits among those who are not to blame for their condition. It is not the fault of the EU or the Eurozone that they feel without enough income. On the contrary, our membership in the EU is a prerequisite for economic growth. The statistics speak volumes. Everyone has the right to feel as they choose, but based on the statistics, it is clear that we are making progress,” Galabinov concluded his analysis.

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