On household self-assessment of the economic situation in 2007

12.06.2008

Provisional data on the household self-assessment of the economic situation in 2007 compiled by the Central Statistical Bureau on the basis of the Household Budget Survey show that the dominating self-assessment of the households is ‘’we are neither rich, nor poor’’. In 2007 62.7% of Latvia households had such opinion, and that is slightly more than in 2006 (62.2%). The share of those households considering themselves as rich is stable and insignificant (0.1%).

Household self-assessment of economic situation (per cent)

When comparing the survey results within the last five years, a positive trend may be observed – the number of those respondents considering that they are not rich, but live good is gradually increasing. In the same time, the share of those respondents considering that they are on the verge of poverty or that they are poor is reducing. Still, it should be mentioned that, in comparison with previous time periods, in 2007 the growth of positive self-assessments over the previous year is lowest of all.

Household self-assessment of economic situation in 2007 by regions (per cent)

Self-assessment of economic situation varies in different regions of Latvia. The highest share of households answering “we are not rich, but we manage to live well” is in Riga (17.4%) and Pieriga (15.6%). While responses “we are on the verge of poverty’’ or ‘’we are poor” are most common in Latgale (26.2% and 4.9%). Nevertheless, in comparison with the previous years, the self-assessment of households residing in Latgale is improving. In comparison with 2006, in 2007 the number of households in Latgale assessing their economic situation as ‘’we are neither rich nor poor’’ has increased by 2.5 percentage points. But the number of households answering ‘’we are poor’’ has decreased by 3.0 percentage points.
When analysing self-assessment of economic situation in different socio-economic groups, it may be concluded that, in 2007 most critical assessment of economic situation had households of pensioners, 8.9% of which are considering themselves as poor.

When asking to households ‘’How economic situation in your household has changed over the last year (2007)?'' 23% of the households admitted that it has improved, 47% of households think that economic situation has stayed stable, but 30% said that it became worse. Still, it should be noted that, in the last quarter of 2007 growth of the inflation caused the increase of the negative self-assessments (38%).

How economic situation in your household has changed over the last year (2007)? (per cent)

Prepared by Household Budget Statistics Section
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Intars Abražuns