Turkiye: Households spend most on rent, transport and food

Housing and rent, transport and food had the largest shares in households’ total consumption expenditures last year, a survey by the Turkish Statistical Institute (TÜİK) has shown.

Consumers allocated 23.9 percent of their budget for housing and rent in 2023, the statistics authority said on June 11.

The shares of transport, food and non-alcoholic beverages in total expenditures were 21.9 percent and 20.6 percent, respectively.

Household consumption was one of the drivers of Türkiye’s economic expansion last year,when the country’s GDP grew by 4.5 percent.

The final consumption of households, which accounted for 59.1 percent of national income, increased by 12.8 percent last year from 2022.

In the first quarter of 2024, households’ final consumption grew 7.3 percent from a year ago, while their share in GDP was 56.6 percent.

The groups that had the lowest shares in total expenditures were insurance and financial services with 0.8 percent, education expenditures with 1 percent, and recreation, sport and culture expenditures with 1.9 percent, TÜİK said on July 11.

They allocated 2.2 percent of their budget on health expenditures in 2023, while the shares of clothing, information and communication were 5.4 percent and 3.9 percent, respectively.

Households’ monthly average consumption expenditure was 24,383 Turkish Liras last year, according to the TÜİK data.

Households whose main source of income was wages and salaries allocated 22.8 percent of their expenditures on transport, 22.2 percent on housing and rent, and 18.9 percent for food and non-alcoholic beverages.

“Households whose main source of income was entrepreneurial income allocated 27.3 percent share for transport, 19.7 percent for housing and rent, 19.5 percent for food and non-alcoholic beverages,” TÜİK said.

The share of food expenditures in low-income households’ total expenditures was twice more than that of high-income households last year.

One-person households’ one-person households allocated 31.8 percent of their income to housing and rent expenditures. The shares of transport, food and non-alcoholic beverage expenditures for those households were 18.7 percent and 16.3 percent, respectively.

The annual inflation was 64.77 percent in 2023, inching up from 64.27 percent in the previous year.

The latest data from TÜİK showed that annual inflation accelerated from 69.8 percent in April to 75.45 percent in May 2024.

Source: hurriyetdailynews

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