Bulgaria's Income Nightmare: 9 Times Lower Than Switzerland!

Finance | July 12, 2024, Friday // 09:00|  views

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Bulgaria and Turkey stand out with the lowest average annual net incomes in Europe, amounting to 9,355 euros and 8,968 euros respectively, according to data from Eurostat. This stark contrast underscores the significant wage disparities across the continent, influencing employment dynamics and economic decisions. Northern and Western European nations typically boast the highest average net wages, while Eastern and Southern European countries report considerably lower figures.

Atanas Katsarchev, an economist from theĀ Confederation of Labour "Podkrepa", pointed out on Nova TV that Bulgaria's income levels lag behind the EU average by approximately threefold. Highlighting Bulgaria's position at the bottom in terms of labor costs, he emphasizes the country's hourly wage rate of 9.3 euros and questions why existing financial reserves are not being effectively invested.

Meanwhile, Shteryo Nozharov from theĀ Bulgarian Chamber of Commerce emphasizes that the actual individual consumption of Bulgarians equates to 73% of the European average. He notes that Bulgaria's GDP per capita stands at 64% of the EU average, indicating a slower convergence process. Comparatively, Romania records an annual income slightly higher than Bulgaria's by about 1,500 euros, translating to marginal monthly differences. Nozharov explains that while Bulgaria's average annual salary shows a growth rate of 16%, significantly outpacing the Eurozone's 3%, this growth stems from a lower initial base.

He also points out a shortfall in private investments, which constitute 17% of Bulgaria's GDP compared to the EU average of 23%. Nozharov attributes this economic disparity to declining external demand for Bulgarian goods and persistent instability in energy prices. Additionally, he criticizes governmental pressures to artificially inflate salaries as a measure to offset economic challenges.

Overall, the economic landscape in Bulgaria reflects ongoing struggles with income convergence and investment efficiency, amidst broader disparities in wealth distribution across Europe.

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Tags: Bulgaria, incomes, europe, average

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