Global Demographics releases a new series of reports on household income and expenditure trends
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This new report series builds on the demographic databases of Global Demographics and provides information on how the distribution of households by income might be expected to change over the next two decades, and with that the implications for household savings, total expenditure and expenditure on key categories such as food, clothing, etc.

The reports begin by looking at the average trend in household income, and how that relates to forecast GDP trends. It then looks at the relationship between household income taxes, savings and overall propensity to spend. Typically as incomes go up so the proportion of it that is saved increases and the proportion that is spent decreases.

This is followed by a section which looks at the ability of households to save their income by income level and what total savings of all households will be by income level through to 2029. It shows how important particular income groups are to the total savings of a country.

The report then examines actual expenditure by households (separated for each of urban and rural households where appropriate) and shows what proportion of total expenditure is accounted for by each income group as well as the expected level of household expenditure in total through to 2029. In short how rapidly will the consumer market grow over the next two decades in real terms, and which particular income groups will drive that increase in consumption.

The report then looks quite specifically at each of 12 expenditure categories and how much will be spent on those categories through to 2029. As might be expected faster growth rates are experienced by the more discretionary categories once household incomes get to a point where the non discretionary items are satisfied. This point varies significantly by country and has significant implications for which categories grow in which countries in future.

Finally, given these uncertain economic times, the report looks at the impact of slower real GDP growth on household expenditure. The base case used for these reports is the IMF forecasts for 2009 and 2010 - with the subsequent years real GDP being based on the trend in productivity per worked (driven by education profile of workforce) and number of workers (driven by number of persons of working age and propensity to work). The two scenarios are where the 2009 IMF forecast is reduced by each of 2 and 4 percentage points, with the total real GDP recovering by 2013. This section of the report shows how much the expenditure of households might decline from the base case, by which income groups, and also by each of the 12 expenditure categories covered.

Format: PowerPoint
Delivery: email or download from website
Price: US$450

Expenditure Categories covered:
Food and Non Alcoholic Beverages; Alcohol and Tobacco; Clothing and Footwear; Housing (Actual or imputed rentals); Housing utilities; Furniture and Household Equipment; Health; Transport; Communication; Recreation and Culture; Education; Other Consumption Expenditure