Household income in eastern Germany reaching 77% of western level
WIESBADEN – Since the first half of 1998, the net income of households in Germany rose an average 8% to EUR 2,770 in the first half of 2003. In the new Länder and Berlin-East, the household net income increased 10% over the last five years, reaching EUR 2,230 or 77% of the western level (in western Germany: +8% to EUR 2,900). Five years earlier, the figure was 75%. Between 1993 and 1998, the adjustment of east-German net incomes towards western incomes (from 68% to 75% of the western level) had been clearly stronger.
The above and other results of the sample survey of household income and expenditure 2003 (EVS 2003) on the financial situation and the consumption behaviour of households in the first half of 2003 have been presented today by the President of the Federal Statistical Office, Johann Hahlen, in Berlin. Analyses have shown in particular that sex, age, and structure of the households exert considerable influence on the level of household net income and on the resulting consumption possibilities and behaviour.
Households with a woman as the main income earner had a monthly net income of EUR 2 030 in the first half of 2003, which was 63% of the net income of households with a male main income earner (EUR 3,220).
"Young" households with main income earners aged under 25years had EUR 1,360 per month or over 40% of the net income of the 45 tounder 55 year olds, who earned the highest incomes (EUR 3,380) when compared by age. "Young" households spent about 90% of their disposable income on consumption and saved 4%. Households aged between 25 and under 55 years spent between 71% and 77% of their income on consumption purposes, saving between 11% and 15%.
The consumption behaviour shows age-specific differences: In the households of those aged 80 and over, nearly every second "consumption euro" was spent on housing and health care. Among those aged under 25, it was every third euro. However, the "young ones" spent 22% of their consumption expenditure on transport and communication, while among the "old ones" it was just 8%
The results of the sample survey of household income and expenditure 2003 also show that, in the first half of 2003, lone parents had just under EUR 1,800 per month at their disposal, which was less than half (48%) of the net income of couples with child(ren)(EUR 3,750). Consequently, lone parents had little left for saving. They spent 88% of their disposable income on consumption and saved just 6%. Among couples with child(ren), the savings ratio was 14%, that is more than twice the ratio of lone parents. On average, they saved about EUR 550 per month, that is more than five times the amount of lone parents (EUR 100).
The sample survey of household income and expenditure 2003 evaluations also illustrate shifts in the consumption structure since 1998. The share of transport expenditure rose from 13.7% to 14.4% of the consumption budget, taking the place of food expenditure (14.0%) as the secondlargest item, following housing expenditure (32.5%). The approximately 10% increase of transport expenditure is mainly due to the price increase of motorfuels as a result of rising crude oil prices and of the ecological tax reform.This had also an upward effect on expenditure for housing-related energy (heating, electricity). Together with the expenditure on motor fuels, the average total energy budget of households rose within five years from EUR 160 to over EUR 200 per month (+26%). Expenditure on telecommunication (i.a. internet, mobile phone) increased even more strongly. Household expenditure on that item was up by over 30% since the first half of 1998, although telecommunication services prices were down 26% over the same period.
The partly considerable additional expenditure on transport, communication and housing energy was offset by the households through selective non-consumption in other areas. The share of expenditure on housing equipment and household appliances was down from 7.0% in 1998 to 5.7% in 2003. The amount spent per household on that item decreased from EUR 140 to EUR 120 per month (–15%). Also, the consumption shares of hotel and restaurant services (from 4.7% to 4.3%) and clothing and footwear (from 5.5% to 5.0%) declined.
Detailed results on the income situation and consumption expenditure of households in Germany in the first half of 2003 are contained in the press brochure "Einnahmen und Ausgaben privater Haushalte" (household income and expenditure), which is available for free download from the web site of the Federal Statistical Office at http://www.destatis.de.
For further information please contact: Bonn Branch Office info service on household budgets and time use tel: (+49-1888) 644–8880 e-mail: viiid-info@destatis.de
