How Countries Spend Their Money

by The Bearing Wave on September 16, 2015

The Economist has published a chart with comparisons how households in leading selected countries prioritise their spending.

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According to The Economist, it seems a country’s spending reflects its national stereotypes, according to household expenditure data compiled by Eurostat: Russians splash 8% of their money on booze and cigarettes—far more than most rich countries—while fun-loving Australians spend a tenth of theirs on recreation, and bookish South Koreans splurge more than most on education. Some of the differences are accounted for by economics.

Richer places like America and Australia, where household expenditure is around $30,000 per person, will tend to spend a smaller share of their costs on food than Mexico and Russia, where average spending is around $6,000. And politics plays a part too. Predominantly private health care in America eats up over a fifth of each household’s budget, whereas the European Union, where public health care is common, only spends 4% on it. In Russia, government-subsidised housing and heating make living cheaper, and this means money is left over for the finer things in life.

About The Bearing Wave :

The Bearing Wave is a blog for the consulting firm Bearing, where we write about our methodology and experience. We also present news from our practice and thoughts on development, and we sometimes publish guest authored articles. The blog has been published since 2009 and contains hundreds of articles, and it has several hundred readers every day from across the world.

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