Analysis of Bulgarian income, consumption, and poverty data indicates a general trend of improving well-being rather than escalating poverty levels. Reports show that the real income and purchasing power of households have increased significantly, with the average consumer income adjusted for inflation rising over 80% in the last decade. This growth has coincided with a noticeable shift in household spending patterns, moving away from basic necessities toward increased expenditures on leisure, culture, and education.
While acknowledging persistent issues of inequality and poverty, experts note these challenges are increasingly concentrated within specific vulnerable demographics. According to Adrian Nikolov, senior economist at the Institute for Market Economics (IME), social policy adjustments should therefore focus on the highest-risk communities. Despite high inflation over the past five years, households retain nearly double the goods and services purchasing capacity they held ten years prior.
Expenditure analysis reveals that the proportion of spending on food has decreased, while the share allocated to the home has fallen. Conversely, spending on leisure and education has risen as a share of total budgets. However, poverty figures for 2025 remain a concern, with the percentage of people below the poverty line exceeding 21%.
Crucially, the poverty line itself has been rising faster than annual inflation, suggesting that the real purchasing power for those near the threshold is improving. The analysis suggests that the main determinants of poverty remain linked to labor market integration, educational background, and social inclusion, necessitating a reform of social assistance to ensure welfare spending is highly targeted rather than broadly applied.
Topics: #poverty #purchasing #power
