Average family spending at $60K annually: Report

By Uale Tofilau 15 January 2025, 3:00PM

The 2023 Household Income and Expenditure Survey (HIES) showed that an average family in the country spent more than $60,000 annually and food accounted for 35 per cent of spending.

According to the report, the total population of Samoa stands at 209,184, distributed across 32,040 households. With an average household size of 6.5 persons, rural areas account for 71 per cent of all households, while urban areas the remaining 29 per cent.

The report reveals that in 2023, the total household income across Samoa reached $2.03 billion, with the average annual household income estimated at $62,456. Urban households reported significantly higher earnings, averaging SAT 79,159 annually, compared to $59,817 for rural households.

It was noted that households headed by individuals aged 40 to 59 years and those aged 60 years and over recorded the highest income levels. This indicates a potential correlation between age, experience, and earning capacity.

Total household expenditure in Samoa for 2023 was $1.96 billion, with an average annual expenditure of $61,257 per household. Similar to income patterns, urban households reported higher spending, averaging $69,952 annually, while rural households spent an average of $59,298.

Wealthier households spent approximately 2.5 times more than poorer households. This stark contrast underscores the significant income and expenditure disparities within the country.

Based on the findings, the high cost of living, particularly in urban areas, continues to pose challenges for many households. Expenditure data shows that a large proportion of household income is allocated to essential needs: food accounts for 35 per cent of total expenditure, housing and utilities 13 per cent, and transport 10 per cent.

The report highlights that the Apia Urban Area leads in income and expenditure, followed by Savai’i, North-West Upolu, and the rest of Upolu. On average, urban households spend about $10,000 more annually than rural households, reflecting the higher costs associated with urban living.

Income disparities remain a significant issue, according to the survey. Households in the lowest income quintile earn an average of $38,700, while those in the highest quintile earn $82,765. Despite these disparities, remittances and cash transfers continue to play a vital role in sustaining low-income households.

The findings also show a steady increase in average household expenditure over time, with particularly notable growth between 2013 and 2018. Spending patterns have remained relatively consistent, with food, housing, and transport dominating household budgets.

This comprehensive report is expected to serve as a vital resource for improving living standards and promoting socioeconomic equity in Samoa.

 

By Uale Tofilau 15 January 2025, 3:00PM
Samoa Observer

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