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Last year 27% of Latvian households could not make ends meet

Data published March 11 by the Central Statistical Bureau (CSB) show that in 2020, 27.2 % of households covered their daily expenses with difficulties or with great difficulties.

This is 1.4 percentage points less than in 2019, when 28.6 % of households had such difficulties.

The share of households that covered their daily expenses with some difficulty or fairly easily has remained unchanged (62.4 % in 2019 and 62.8 % in 2020). In turn, the share of households that covered their daily expenses easily or very easily has increased slightly - from 9.0 % in 2019 to 10.0 % in 2020.

Households in Riga and Pierīga were the most optimistic about their ability to cover daily expenses - 12.9 % of Riga households and 10.5 % of Pierīga households stated that daily expenses are covered easily or very easily. The majority of households in Vidzeme and Kurzeme indicated that they cover them with some difficulty or fairly easily (68.5 % and 66.9 %, respectively).

In Zemgale and Latgale, about a third of households are pessimistic about their ability to cover daily expenses - 35.1 % and 32.0 % of households, respectively, admitted that it causes difficulties or great difficulties.

Household ability to cover their daily expenses in regions, urban and rural areas; 2020
(as per cent, sum of answers 100 %)

 

With difficulty or great difficulty

With some difficulty or fairly easily

Easily or very easily

Latvia

27.2

62.8

10.0

Urban areas

26.7

62.8

10.5

Rural areas

28.7

62.6

8.7

Riga

24.4

62.8

12.9

Pierīga

26.5

62.9

10.5

Vidzeme

26.8

68.5

4.7

Kurzeme

24.4

66.9

8.8

Zemgale

35.1

56.7

8.2

Latgale

32.0

60.0

7.9

 

Households of single seniors (aged 65 and over) and households with one adult and children had the greatest difficulty in meeting their daily expenses - 42.1 % and 37.5 % of these households, respectively, acknowledged that their daily expenses were covered with difficulty or with great difficulty. Couples with two children had the least difficulty in covering daily expenses - only 11.1 % indicated that daily expenses are covered with difficulty or with great difficulty.

In 2020, Latvian residents indicated that the necessary minimum amount to cover daily expenses per person would be at least EUR 561 per month. This is EUR 18 or 3.2 % less than a year ago, when the necessary amount was at least EUR 579 per month. Income in 2019 slightly exceeded this amount, reaching EUR 583 per month per household member.

The poorest households had the largest difference between their necessary and disposable income. In 2020, for the poorest or 1st quintile group households, the minimum amount to cover daily expenses per person was at least EUR 422 per month - EUR 7 less than a year ago, when the desired amount was EUR 429, but income reached only half (47.4 %) of this amount.

In 2020, more than half or 53.9 % of the poorest households (1st quintile group) covered their daily expenses with difficulty or with great difficulty. Among the wealthiest (5th quintile group) households, this share was significantly lower (5.9 %) and their preferred minimum amount to cover daily expenses was at least EUR 784 per person per month.

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