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Nation in the poor house?

1st June 2009

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Living conditions in Poland are among the lowest in Europe, with as many as 54 percent of citizens unable to afford unexpected expenses. Only Hungary and Latvia fared worse, according to Eurostat data. Meanwhile, the EU27 average for this figure stood at around 34 percent.

Having emerged from behind the iron curtain just twenty years ago, Poland is still considered a poor country despite its strong economy. Figures published last week showed Poland was managing to buck the EU trend towards recession, posting 0.8 percent y/y GDP growth over the first three months of the year while data from the remaining nine other eastern EU members showed negative growth.

However, this will be little comfort to the hundreds of thousands of Poles living on or near the breadline. According to Eurostat's 'Living Conditions in the EU27', as many as 17 percent of Polish households are in arrears on utility bills, placing them a close second behind Hungary, with 18 percent. Greece, with just seven percent of the population and France and Cyprus, tied at 6 percent, had the best rating as regards utility-bill arrears.

The report, which was based on 2007 data, indicated that Polish households fared little better in terms of living conditions. Just 54 percent of families could afford unexpected expenditures, which the EU's statistics office defined as “equal to 1/12 of the national poverty threshold” – €145 (zł.650.78) in Poland's case. In joint bottom-placed Hungary and Latvia 63 percent of the population were unable to meet unplanned expenses.

The report also found that one fifth of Poles could not afford a car, compared with the top countries Cyprus and Luxembourg, where only two percent were unable to find the means to run an auto. (RG)

Source: Eurostat


From Warsaw Business Journal by Roberto Galea

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