Consumption Makes up Bigger Share of GDP in EECCA Region
Data for 2010 show an increase in the share of final consumption expenditure in Gross Domestic Product (GDP) compared to 2007 for most of the countries in Eastern Europe, the Caucasus and Central Asia (EECCA) as well as for the European Union (EU27) countries.
The share of final consumption in GDP in the selected EECCA countries amounted to 90 per cent in 1996. After a decade of relatively strong economic growth the share of consumption in GDP had fallen to 80 per cent in 2007.
After the outbreak of the economic crisis it increased to 83 per cent in 2010, mainly as a result of an increase in households' consumption/income ratio and expansionary fiscal policies in a number of countries that resulted in increased expenditures on e.g. health and social security. Countries may consume more than they produce, like Armenia and Georgia in 1996 and Moldova and Kyrgyzstan in 2010. This is reflected in a corresponding deficit on the foreign trade balance.
Source: UNECE Statistical Database