Purchasing Power in 2010/2011 Up in Europe, Down in Bulgaria

The standard of living in Bulgaria is drifting away fromn the average in the EU and other European countries. Photo by BGNES

Bulgaria continues to have the lowest purchasing power in the EU and is left behind by countries like Montenegro and Serbia, which are not even EU member states, data from the market research company GfK showed.

The purchasing power index takes into consideration net income, expectations for the GDP, inflation, prices of goods and services, etc.

According to the GfK survey, in 2010/2011, the index for Bulgaria is decreasing, in comparison to last year, while the average purchasing power index for the other EU member states is increasing. This means that the standard of living in Bulgaria is drifting away from those in Europe.

The data showed that the purchasing power in Bulgaria for 2010/2011 will be EUR 2,618 per inhabitant, while the average numbers for EU member states and for the other European countries are EUR 14,202 and EUR 11,945 respectively. This is an increase of around 2,1% over the previous year's level, while Bulgaria is registering an 8% drop.

However, Bulgaria is not the only country to register a decrease in consumer potential. The crisis has left its mark in some other countries as well, like the ones comprising former Yugoslavia, as well as Moldova, Ukraine and Belarus, who continue to occupy the lowest ranks. Inhabitants of these areas have less than one-third of Europe's average purchasing power.

This year's study suggests the beginning of a recovery from the economic and financial crisis. A few countries are already enjoying a clear upswing in consumer potential.

Turkey is among those European countries that successfully weathered the economic crisis and achieved positive economic development in 2010. Turkey's per capita purchasing power consequently rose by over 10 percent, moving it up several places in the rankings.

The Principality of Liechtenstein has the biggest consumer potential. The purchasing power there is EUR 50,000 per inhabitant per year.

According to experts, the decreasing purchasing power in Bulgaria is another sign that the recovery of the domestic consumption would most probably slow down. This expectation is backed up by the increasing prices of foods and services at times when incomes are decreasing.

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