Where is the poverty line and how many Ukrainians live behind it

Где проходит черта бедности и сколько украинцев живут за ней

People are getting richer?

Ukrstata data on expenditures and resources of Ukrainian households suggests that the welfare of Ukrainians this year is growing. As shown by the results of a sample survey of household living conditions, the average monthly income per household in the first half of 2018 amounted to UAH 9249. According to Ukrstat, for the year the income grew by 23.5%, while inflation during this period was 12.6%. Thus, the income growth of almost 11% higher than the rate of inflation, indicating that the growth of welfare of Ukrainian families.

Note that a household is considered to be every person or family who lead an independent economy and have its own budget. One average Ukrainian household consists of 2.58 people.

The income of Ukrainian families is not simply the sum of wages and pensions, which have on the family. Takes into account other types of income. Such as the amount of non-cash benefits and subsidies, gifts, etc. sampling of expenditures and resources of households to income as well as the relative value of products grown in home gardens. Even that which is not for sale, and to power the actual family members. Value of vegetables grown and collected berries is calculated at average prices in the trading network. Therefore, it is clear that the figures of the incomes of Ukrainian families who displays Ukrstat, much more than the amount of “real” money, who see the Ukrainians.

How many in Ukraine the poor

Income below average (i.e. below 9249 UAH per month) today have more than half the population is 58.7 per cent. Moreover, compared to the same period last year this figure rose by 0.2%. Including 30.5% of Ukrainians have incomes below the real cost of living (in the first half of 2018, the Cabinet determined the real cost of living at the level of UAH 3233,33). And 2.1 percent manage to live on incomes below the legally established minimum subsistence level (less than 1700 UAH for this period).

We will add that relatively healthy, i.e. having income of more than $ 200 (or more precisely, over 5160 UAH in statistics Ukrstata) in Ukraine can be considered only 27.5% of the families.

However, the comparison with last year also confirms that the welfare of Ukrainians is growing slowly. For example, “rich”, i.e., people with incomes of over UAH 5160, by the summer of 2017, there were only 12.9%. So for the last year, the number has more than doubled. Incomes below the real subsistence minimum in the first half of 2017 had 37.1% (currently 30.5 mm), below the official subsistence minimum 3.5% of families (now 2.1 per cent).

Absolutely poor, according to international criteria, people are those whose income is below the subsistence level. In Ukraine consider absolute poverty income below the official subsistence level, although in most countries split this indicator into “official” and “real” does not exist. According to Ukrstata, absolutely poor in Ukraine are 800 thousand people. A year earlier, there were 1.4 million.

If income is not enough

In addition to Ukrstat considers income and total resources of households. They include not only income, but also income from the sale of real estate and household property, loans and debts. Many components of this indicator, a person has to take when income life is not enough.

In the first half of the 2018 total resources of the average household amounted to UAH 9426,9 – almost 180 UAH more than the income. A year ago the difference was about 164 UAH.

But the latest data show that loans and debts Ukrainians have become less. If last year they accounted for an additional 2.2% of the amount of income, now is 1.9%.

Subsidies and farm feed less

In the structure of incomes of Ukrainian families are the bulk of the salary (53,7%) and pensions with the fellowship (of 20.8%). And for the last year the share of wages increased by 2.5%, and the share of pensions and grants, despite indexing, remained the same.

Income from business amount to only 5.8 percent of the income of the average Ukrainian family (a year ago was lower – 4.3 percent).

Non-cash social assistance in the form of subsidies and benefits in terms of the average Ukrainian family is only 4.6 percent (4.4 percent for housing and utility services and 0.2% of the remaining medical, etc.). And for the last year this figure fell by almost a third (was 6.5 and 0.4% respectively).

Где проходит черта бедности и сколько украинцев живут за ней

Lower income brought and grown in home gardens products. As in Ukraine, only a third of families live in rural areas, in terms of the total number of families contribute to the family budget of the households is small – 3.9% of the consumption of own-grown products and 2.5% of sales. A year ago it was 4, No. and 2.5% respectively.

If we talk about rural households, the structure of income of own-produced products account for a much larger share of the revenues. But the percentage of consumption and they became less. So, in the first half of 2017 10.6% of rural family income was the production from private plots. In 2018 is 9.9%. Revenues from the sales were 7.1% now to 7.1% in the income of rural families.

Half of the income of “eat”

Food takes almost half of the family income, and the share of food increased. By the middle of 2017 47.7 per cent of total household expenditure was on food, and in 2018, accounted for 48.3%. But the percentage of communal apartments has decreased over the year from 19.9 to 17.4%.

Significantly increased non-consumptive expenditure, which include the purchase of shares, Bank deposits. Alimony and relatives, the money spent on construction and repair of housing. In 2017, these expenses amounted to 6.3% of average family income, and this increased to 7.5%.

Где проходит черта бедности и сколько украинцев живут за ней

Source: segodnya.ua