SABA/ST. EUSTATIUS--The purchasing power of the population in St Eustatius improved in 2015 with a median increase of 4.4 per cent, the highest in the Caribbean Netherlands, Central Bureau for Statistic (CBS) stated. In 2015, the median purchasing power of Saba’s population improved by 2.2 per cent.
This was the lowest increase since 2012, when measurement started. Both people in employment and benefit recipients in Saba saw a median increase of 2.2 per cent. People up to the age of 40 saw the most substantial increase at 4.6 per cent.
Statia people in employment and benefit recipients saw their spending power improve by 4.3 and 4.5 per cent, respectively. At 8.4 per cent, couples with children saw the highest improvement of their purchasing power.
On Statia, purchasing power weakened between 2012, - when it was measured for the first time -, and 2014, but became stronger in 2015. Not everyone benefited from this increase; 38 per cent of the population lost purchasing power.
Purchasing power developments in Statia’s households whose main income is derived from work or their own business follow a pattern similar as the overall population. After years of levelling off, their spending power increased by 4.3 per cent in 2015. Households depending mainly on social security saw their purchasing power increase by 4.5 per cent, compensating for the decline in purchasing power in 2014.
In 2015, people in single- and multi-person households gained 4.5 and 4.2 per cent in spending power, respectively. Couples with children saw the most positive effects with spending power going up by 8.4 per cent.
In 2015, Statia’s households saw an overall increase in purchasing power improve. The sharpest increase was seen among people in the age category up to 40 years. These are the people who are still moving up the career ladder. As they gain more work experience and find better paid jobs, their wages increase. In 2015, their median spending power increase was 7.2 per cent.
Middle-aged households saw purchasing power increase less sharply, by three per cent.
For older households whose primary source of income is old age insurance benefit AOV, the purchasing-power improvement was equal to the increase in income.
In 2015, AOV for Statians was increased by 3.4 per cent, from US $8,047 in 2014 to $8,320 in 2015. At the same time, prices dropped by one per cent. The increase in real terms was, therefore, 4.4 per cent, nearly equivalent to the median improvement in purchasing power for Statia households who depend on social benefits, as well as for those with a main breadwinner aged 60 or over.
For these AOV-benefit recipients, the real increase in purchasing power can almost entirely be attributed to the increase in their benefit entitlements.
In all income groups, purchasing power went up in 2015. The wealthiest households gained the most at 8.3 per cent. Nevertheless, 30 per cent of people in these households lost purchasing power.
In each year since 2012, purchasing power of the population improved. However, the improvement declined from a 4.6 per cent increase in 2012 to a minor 2.2 per cent increase in 2015.
The share of people that were confronted with a decline in purchasing power remained virtually stable. In 2015, around 36 per cent of the population was negatively affected.
In 2015, purchasing power on Saba improved by 2.8 per cent for people with income from (self) employment in 2014 and 2015. Benefit recipients saw an increase of 2.2 per cent in 2015; there are no reliable figures for this group over the years 2012-2014.
For both single and multi-person households, the median purchasing power increase was 2.2 per cent. Households with (young) children saw the most positive effects. One-parent households gained 4.1 per cent while couples with children saw their purchasing power improve by three per cent. A relatively minor increase of 1.5 per cent was recorded among couples without children.
The increase of purchasing power in Saba was (more than) twice as high among the youngest age group (people under the age of 40) compared to the older age group.
The median purchasing power of the younger group increased by 4.6 per cent. For people in the age category 40-59 years and people aged 60 or older, purchasing power grew less rapidly at 2.3 and 2.2 per cent, respectively.
In 2015, the increase in the older age groups is similar to the rise in real income consisting of AOV benefit. Spending power decreased by 30 per cent in this group.
In 2015, AOV for Sabans went up by 2.6 per cent, from $8,034 in 2014 to $8,424. On the other hand, prices went down by 0.4 per cent in 2015. The increase in real terms was therefore 2.2 per cent, or almost equal to the median change in purchasing power for people in Saba in households mainly depending on social benefits in both 2014 and 2015 as well as the group of people with a main breadwinner aged 60 and over.
For these AOV-benefit recipients, the actual change in purchasing power is almost entirely due to the real-term increase in their benefits.
In 2015, purchasing power increased for all income groups in Saba but most substantially for persons in the highest income group. The median spending power of this group went up by 3.7 per cent. For nearly three out of ten households in the highest income group, however, there were negative effects, CBS stated.
