439 thousand persons or 23.4% of the population of Latvia were at risk of poverty in 2020 – 1.8% more than in 2019. Disposable income of this share of population was below the at-risk-of-poverty threshold.
As disposable income of the population grew in 2020, at-risk-of-poverty threshold went up as well – to EUR 472 monthly in single person households (EUR 441 monthly in 2019). In households consisting of two adults with two children aged under 14 in 2020 at-risk-of-poverty threshold reached EUR 991 monthly (EUR 972 monthly in 2019), according to data of the survey conducted by the Central Statistical Bureau (CSP).
The largest share of population at risk of poverty was registered in Latgale (36%) and the smallest in Pieriga (16.1%) and Riga (17.8%). In Vidzeme 32% of population were at risk of poverty, in Kurzeme – 29.5% and in Zemgale 24.1%.
The risk of poverty increased most rapidly last year among the population over 65.
In 2020, the share of older people at risk of poverty reached 44.6% (an increase of 3.7% from 2019). Among the population aged 50-64, the share of persons at risk of poverty reached 24% (an increase of 2% from 2019).
The risk of poverty increased at a significantly slower pace among 25-49 year old persons and children under 17 (+1.1%). In 2020, 14.7% of the population aged 25-49 and 16.9% of children under 17 were at risk of poverty.
Pensioners (50.9%) and the unemployed persons (46.8%) were most at risk of poverty.
The share of people at risk of poverty was the lowest among the working population (9.8%).
Social transfers play an important role in reducing the risk of poverty, ranging from targeted state and local government support to pensions based on lifetime social tax contributions. The impact of social transfers on personal income has increased slightly in recent years. In 2020, support received from social transfers reduced the share of people at risk of poverty by 17.1%.
In the absence of social transfers, state and local government support, including old-age pensions, 40.5% of the population would be at risk of poverty, according to CSP.
In 2019, social transfers diminished risk of poverty by 16.8% and in 2018 by 16.4%. (BNN/Business World Magazine)
