Average incomes of residents in Latvia are increasing each year, and the purchasing power of the population is also growing; however, the opportunities for the least affluent part of society are increasingly lagging behind those of the wealthiest, writes Latvijas Avīze.
The escalation of the crisis regarding heating bill payments after a cold winter month also indicates that poverty remains a pressing issue in the country.
"Although overall incomes and purchasing power have increased, their growth has been insufficient. The wealth of residents in Latvia still does not reach the average level of European Union countries," emphasizes the chairperson of the European Anti-Poverty Network "EAPN-Latvia," Laima Balga.
According to her, last year 7.8% of residents in Latvia were subjected to severe material and social deprivation, while 22.5% were at risk of poverty. In total, this amounts to over 400,000 people.
Despite rising prices, which consume a significant portion of income growth, the purchasing power of the population has slightly increased over the past ten years. According to statisticians, in 2014, the average working Latvian could buy 84 kg of boiled sausage, 630 liters of milk, or 4002 eggs with their entire salary, while in 2024, they could purchase 114 kg of sausage, 874 liters of milk, or 4038 eggs. Data from the Central Statistical Bureau shows that a similar trend was observed for other staple foods, except for beef, potatoes, and bread, which could be purchased in slightly lesser amounts on an average salary in 2024.
Although the average pension allows for the purchase of almost half as many products as the average salary, the purchasing power of pensioners has also grown. In 2024, an average pension could buy 2210 eggs (compared to 1902 in 2014), 63 kg of boiled sausage (compared to 40 kg in 2014), or 479 liters of milk (compared to 299 liters in 2014).
From 2004 to 2014, average monthly income per household in the country tripled, and from 2014 to 2024, it doubled. However, Latvia maintains a very high level of income inequality: in 2024, the incomes of the wealthiest residents were 6.7 times higher than those of the least wealthy. The Gini coefficient in 2024 was 35.6%, demonstrating the highest level of inequality in recent years.
