In 2019 household disposable income increased by 6.8% in Latvia

Data published December 22 by the Central Statistical Bureau (CSB) show that, compared to 2018, in 2019 household disposable income increased by 6.8%, reaching 583 euros per household member monthly.

Income grew significantly slower than in previous years, when it rose by 11.7 % in 2018 and 11.8 % in 2017, respectively.

The highest income was in Riga, where it reached 690 EUR per one household member monthly. In Pierīga it reached 657 euros per household member a month, in Zemgale – 533 euros and in Kurzeme – 494 euros a month. The lowest income was in Vidzeme (479 euros monthly) and in Latgale (411 euros monthly). In urban areas income per one household member reached 614 euros monthly and in rural areas – 515 euros monthly.

In 2019, household income from labour per household member rose by 5.8 % – from 389 euros a month in 2018 to 412 euros a month in 2019. However, income from social transfers (pensions, allowances and other budgetary payments) per household member grew by 6.3 % (from 125 euros a month to 133 euros a month).

The share of income from labor amounted to 70.6 % of the total disposable income and the share of social transfers amounted to 22.8 %.

Compared to other European Union (EU) Member States, the income inequality level in Latvia still remains high. According to the latest data, the Gini coefficient of Latvia was the fourth highest among EU Member States. In 2018, the coefficient was higher only in Bulgaria (40.8 %), Lithuania (35.4 %) and Romania (34.8 %); the average coefficient of EU amounted to 30.7 %. Also quintile share ratio was the fourth highest in the EU. Higher quintile share ratio in 2018 was in Bulgaria (8.1), Romania (7.1) and Lithuania (6.4), while the EU average amounted to 5.1.

LSM.LV

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