Analysis of Bulgarian income, consumption, and poverty data indicates a recent trend of rising well-being rather than escalating poverty. Households have seen increases in real income and overall purchasing power, accompanied by a notable shift in spending patterns away from basic necessities toward leisure, culture, and education. While the existence of poverty and inequality persists, they are increasingly concentrated within specific vulnerable demographic groups.
According to Adrian Nikolov, a senior economist at the Institute for Market Economics (IME), the real-income index has shown steady growth over the last decade. While the period included a slowdown due to high inflation in 2022, data suggest accelerated real income growth through 2024 and 2025. This growth, coupled with spending shifts—such as decreased spending on food as a share of total expenditure—indicates improved financial capacity.
However, the analysis cautions that poverty remains a concern, with the percentage of people below the poverty line remaining above 21% in 2025. Despite this, the rising poverty line has increased faster than general inflation, suggesting that the purchasing power of those near the threshold is improving. Inequality, though improving gradually, remains high, particularly affecting groups such as the Roma community and those with low educational attainment.
IME suggests that social policy interventions must be highly targeted to the highest-risk communities
Topics: #poverty #purchasing #power
