The income of Croatian households is decreasing, while the shares of food/drinks and utilities in total income are rising.
Three-quarters of Croatian citizens do not have sufficient income to meet basic living needs, according to the latest Gfk research.
At the end of 2012, an average Croatian household had a monthly income of 6,300 kuna (840 €). However, according to their subjective assessment, an average of 8,955 kuna (1,194 €) is necessary to cover basic costs/needs.
An average four-member family earns 7,830 kuna per month (1,044 €), while it needs an average of 11,130 kuna (1,484 €).
How can an average Croatian household live with a shortfall of 2,655 kuna or a four-member family with 3,300 kuna less each month? Will the continuous lack of funds result in an even greater number of blocked accounts for Croatian citizens due to unpaid mandatory costs (almost 250,000 blocked accounts at the beginning of February 2013)?
Compared to last year, the value of necessary income for a household has not changed significantly (2011 – 8,824 kuna, 2012 – 8,955 kuna), but the actual income has decreased by about 5 percent (2012 – 6,300 kuna; 2011 – 6,610 kuna).
Regionally, the highest incomes are achieved in the city of Zagreb – 7,043 kuna (939 €), while the lowest are in Slavonia – 5,280 kuna (704 €).
Although 76 percent of Croatian households have lower incomes than necessary, there are also households in Croatia whose members earn higher or sufficient incomes to meet basic living costs and needs.
Seven percent of Croatian households have higher incomes than necessary, while 13 percent earn ‘just enough’ each month. Although currently 20 percent of households in Croatia meet their monthly obligations, their number is decreasing every year (2008 – 12 percent with higher incomes than necessary, 2012 – 7 percent, 2008 – 17 percent with ‘just necessary incomes’; 2012 – 13 percent).
In Zagreb and its surroundings, as well as in Dalmatia, there are the fewest households with lower incomes than necessary (Zagreb and surroundings – 66.8 percent, Dalmatia – 66.3 percent), while the highest percentage is in Istria – 87.6 percent.
In Zagreb, the highest percentage of households with higher incomes than necessary is found – 13 percent, while there are none in Istria, only 1.4 percent in Slavonia, and 2.4 percent in Lika.
When comparing actual and necessary incomes for households that do not have sufficient available funds (76 percent), it is found that, on average, their necessary income should be as much as 73 percent higher than the current (average share of the difference between actual and necessary income).
Total household expenses – 6,000 kuna (800 €), are almost equal to those from last year (776 €).
The largest share of expenses in total household income is allocated to food and drinks – 33 percent. Adding housing costs, it turns out that 54 percent of their income is spent by Croatian households to meet basic existential needs.
The share of food and drink expenses is rising along with housing costs (2011 – share 48 percent), actual incomes are decreasing, leaving Croatians with less and less money to meet other needs (entertainment, recreation, education, medical services, clothing and footwear), which are becoming luxuries for an increasing number of Croatian citizens.
All Croatian households share the commonality of spending monthly money on food/drinks and housing costs (utilities). Among other products/services, the largest number of households allocate money for mobile phone services (92 percent), landline phone (85 percent), and transportation (83 percent).
77 percent of Croatian households spend money on clothing and footwear, while almost 2/3 of Croatian households (62 percent) allocate money for medical services.
Almost the same number of Croatian households spends money monthly on culture, recreation, and entertainment (46 percent), on tobacco and cigarettes (45 percent), and on durable goods. Only 30 percent of Croatian households allocate money for education (an average of 518 kuna per month).
Comparing this year’s spending with that of a year ago, the following was shown:
The same number of households spends on food, housing costs, landline, and mobile phones. However, food/drink costs have increased by 9 percent, and housing costs by 5 percent. Larger amounts (from 4 percent to 8 percent) are also spent on purchasing clothing and footwear, medical services, and tobacco and cigarettes. Smaller amounts of money, compared to last year (from 7 percent to 10 percent), are spent on culture and entertainment, then on mobile phones and education, while expenses in other categories of products/services remain unchanged.
The largest decline in the scope of spending is observed in durable goods – 32 percent fewer households are purchasing durable goods. There is a decreasing number of households spending money on products that do not fall into the category of basic needs: 21 percent. The largest decline in the scope of spending is observed in durable goods – 32 percent fewer households are purchasing durable goods. There is a decreasing number of households spending money on products that do not fall into the category of basic needs: 21 percent fewer households are spending on culture, entertainment, recreation, 12 percent fewer are buying clothing and footwear, while 21 percent fewer households are spending on medical services. It is also concerning that in 2012, compared to the previous year, there were 25 percent fewer households allocating money for education.
