Household Income Catches Up with 1995 Levels for the First Time in 2007

Household income in Bulgaria has been growing steadily in nominal terms over the last 10-12 years, the National Statistical Institute (NSE) said. The average household income per capita rose nearly twofold from 1,502 leva (770 euros) to 3,105 leva (1,590 euros) in the period 1999 - 2007 alone.
The household income in real terms also grew by 24.3% over the period. For the first time in 2007 the household income exceeded by 2.0% the levels recorded in 1995. Real term household income in 2007 registered the biggest growth compared to 2001 (39.2%). The income last year represented a 7.7-percent increase on 2006.
The changes in the income from wages and salaries in the last nine years to a great extent reflects the changes in the total household income over the period. The average per capita income from wages and salaries stood at 1,482 leva (760 euros) in 2007, an over two-fold increase, compared to 1999.
The share of wages and salaries in the total household income rose from 41.9% in the beginning to 47.7% in the end of the period. The trend was also influenced by the changes in the labor market, where the number of employed is rising.
Households' income from wages and salaries grew in real terms as well. The growth of income from wages and salaries in real terms exceeded for the first time the levels of 1995 in 2005. This trend continues in 2007 when the growth exceeded the 1995 levels by 28.2%. The income from wages and salaries rose by 41.7% in real terms in the period 1999 to 2007.
The income from wages and salaries grew by 11.9% in 2007, compared to 2006.
Household expenditure in the period 1999 – 2007 followed the trend of the dynamic changes in the income levels, NSI data show. The average household expenditure in 2007 exceeded 2.2-fold the expenditure in 1999 and 20.2% that of 2006.
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