News Local 2.5% of household spending goes on telecommunications

2.5% of household spending goes on telecommunications

Households in Cyprus spent  €373.4 m, equivalent 1.3% of GDP or  2.5% of their total consumption expenditure on communications in 2018,  according to figures published by Eurostat on Tuesday.

This is the 16th lowest share in the EU 28 and marginally above the 2.3% averaged in the bloc.

Eurstat said that in 2018, households in the EU spent over €200 bn (equivalent to 1.3% of EU GDP) on communications. This represents 2.3% of households’ total consumption expenditure.  Communications s overs postal services, telephone and telefax equipment and services.

Households in Bulgaria spend the highest share, Luxembourg spends the least

In 2018, the share of communication-related household expenditure was highest in Bulgaria (4.8%), Greece (4.4%, 2017 data), Romania (4.1%) and Croatia (4.0%).

In contrast, Luxembourg (1.3%), the United Kingdom (1.6%), Denmark and Austria (both 1.9%) spent the lowest share of their household expenditure on communications.

Estonia – highest decrease in communications expenditure, Romania the highest increase

Of all the main items of household expenditure, communications was the item that saw the most significant decrease in spending over the last decade in the EU. It fell from 2.8% of total household expenditure in 2008 to 2.3% in 2018 (or -0.5 percentage points (pp)).

Between 2008 and 2018, the share of total household expenditure on communications decreased in most EU Member States. The largest decrease was recorded in Estonia (from 3.8% of total household expenditure in 2008 to 2.5% in 2018, or a fall of 1.3 percentage points (pp)). Estonia was followed by the Netherlands (-1.1 pp), Poland (-1.0 pp), France (-0.8 pp), Ireland (-0.7 pp), Czechia, Portugal and Bulgaria (all -0.6 pp).

However, communication spending increased in four EU Member States where 2018 is available: Romania (from 2.1% in 2008 to 4.1% in 2018, or an increase of 2.0 pp), ahead of Lithuania (+0.5 pp), Sweden (+0.4 pp) and Croatia (+0.2 pp).

The source dataset can be found here.

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