Income and Expenses in the First Quarter of 2024
In the first quarter of 2024, the average total monthly income was 8,049 lei per household, representing an increase of 7.3% compared to the fourth quarter of 2023. On a per capita basis, this amounted to 3,210 lei, a 7% increase from the previous quarter. These figures were reported by the National Institute of Statistics (INS).
On the other hand, the total monthly expenses of the population in the first quarter of 2024 were 6,843 lei per household (2,729 lei per person), representing 85% of the total income. This was an increase of 329 lei per household compared to the fourth quarter of 2023.
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Analysis of Household Income and Spending in Q1 2024
According to data from the National Institute of Statistics, the average total monthly income per household in the first quarter of the previous year increased by 15.3%, while the income per person increased by 14.8%.
Household total average monthly expenses in Q1 2024 were 6843 lei per household (2729 lei per person) and accounted for 85.0% of total income, an increase of 329 lei per household compared to Q4 2023. Compared to the first quarter of the previous year, average monthly household expenses increased by 14.6%, and per person by 14%.
Monthly average cash income in Q1 2024 was 7473 lei per household (2981 lei per person), an increase of 7.4% compared to Q4 2023. Meanwhile, in-kind income was 576 lei per household (230 lei per person).
Household Incomes in the First Quarter of 2024
In the first quarter of 2024, the average monthly income per household in Romania was 5,795 lei, representing a 5.2% increase compared to the fourth quarter of 2023. Salaries and associated earnings were the most significant source of total household income, accounting for 68.8% of total household income, which was a 2-percentage point increase from the fourth quarter of 2023.
Significant contributions to total household income also came from social benefits, with an average of 1,558 lei per household (19.3% in the first quarter of 2024, compared to 20.4% in the fourth quarter of 2023), as well as in-kind benefits (7.2% in the first quarter of 2024, compared to 7.3% in the fourth quarter of 2023). In-kind benefits include the value of goods received by employees and social benefit recipients (1.3% in the first quarter of 2024, compared to 1.6% in the fourth quarter of 2023) and the value of agricultural and non-agricultural products consumed from own resources (5.9%).
Income Disparities in Urban and Rural Areas
In the first quarter of 2024, the average total monthly income per household in urban areas was 8,993 lei, which is 1.3 times higher than in rural areas. On a per capita basis, the income was 3,830 lei, 1.5 times higher than in rural areas. This shows a significant income gap between urban and rural residents.
Composition of Income Sources
In the first quarter of 2024, salaries and other wage benefits accounted for 75.1% of total income in urban areas, a 17.6 percentage point difference compared to rural areas. On the other hand, social benefits made up 21.8% of total income in rural areas, 3.8 percentage points higher than in urban areas. Additionally, in rural areas, in-kind benefits accounted for 12.4% of total income, which is 3 times higher than in urban areas.
Monthly Expenses
Monthly cash expenditures in the first quarter of 2024 averaged 6,370 lei per household (2,541 lei per person). This indicates that while urban areas may have higher incomes, they also face higher expenses, highlighting the economic challenges faced by both urban and rural households.
Household Expenditures in Q1 2024
In the first quarter of 2024, household expenditures in Romania increased by 4.7% compared to the fourth quarter of 2023. The average monthly expenditure on food and non-food products from own resources was 474 lei per household (189 lei per person), marking a 10.7% increase from the previous quarter.
The main destinations of household expenditures in Q1 2024 were consumption (cash expenses and the value of self-consumption) at 4,099 lei per household (59.9%), and transfers to public and private administration and social security budgets in the form of taxes, contributions, and fees at 2,323 lei per household (33.9%). Additionally, expenses related to household production (cash expenses and the value of fodder consumption from own resources) amounted to 154 lei per household (2.3%).
There were noticeable differences in expenditure patterns based on the residence environment, highlighting the diverse spending habits among households in Romania.
Average Monthly Household Expenses in Urban and Rural Areas
In urban areas, the average monthly household expenses were 7,572 lei, which is 1.3 times higher than in rural areas. This means that a person living in an urban environment spent an average of 3,224 lei per month, 1.5 times more than a person in a rural setting. When it comes to the structure of total expenses, in urban areas, the share of expenses for taxes, contributions, fees, and taxes was 37.4% of total expenses, which is 9.6 percentage points higher than in rural areas. On the other hand, in rural areas, the share of expenses for agricultural and non-agricultural products from own resources was 12.9% of total expenses, 3.7 times higher than in urban areas.
According to the Classification of Individual Consumption by Purpose (COICOP), food and non-alcoholic beverages, totaling 1,380 lei per household, accounted for a significant share of total expenses.
Household Monthly Expenditures Analysis
According to recent data, the average monthly consumption of households is 33.7% of their total expenses. The largest portion of these expenses goes towards housing, water, electricity, gas, and other fuels, totaling 693 lei per household, representing 16.9% of the total monthly consumption expenses. This is followed by expenses on alcoholic beverages and tobacco, amounting to 302 lei per household, with a share of 7.4% in total monthly consumption expenses, and transportation expenses of 300 lei per household, accounting for 7.3% of total monthly consumption expenses.
On the other hand, the lowest level of monthly average household expenditures is allocated to education, with only 34 lei per household (0.8% of total monthly consumption expenses).
