Estonia behind Latvia, Lithuanian in welfare terms

20.06.2013, 10:47

Estonia is behind Latvia and Lithuania in GDP per capita expressed in Purchasing Power Standards or PPS, show new preliminary figures from Eurostat.

By the figure that shows the actual private consumption by PPS, Estonia was 59% of the EU average, while Latvia’s figure was 61% and Lithuania’s indicator was 74%.

In its comment, Eurostat said that while GDP per capita is often used as an indicator of countries' level of welfare, iti s not the only such indicator, An alternative welfare indicator, better adapted to reflect the situation of households, is Actual Individual Consumption or AIC per capita.

AIC consists of godos and services, actually consumed by individuals, irrespective of whether these goods and services are purchased and paid for by households, but government or by non-profit organisations. In international comparison, AIC is often seen as the preferable measure, since it is not influenced by the fact that the organisation of certain important services consumed by households, like health and educaiton services, differs a lot across countries. AIC is listed among the recommendations of the Stiglitz-Sen-Fitoussi report.

AIC figures compare with GDP per capita in PPS in 2012, by which Lithuania’s figure was 70% of the EU average, while Estonia’s figure was 68% and Latvia’s was 62%. In 2011, Lithuania’s figure was 66%, Estonia’s was 67% and Latvia’s was 58%.