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How The World Spends Its Money

By Sandy Naidu | August 20, 2008

Forbes.com published an article on its website recently which tells us how people in different countries are spending their money. The data for this analysis was obtained from the World Bank’s most recent and hugely comprehensive International Comparison Program study.

The report divides individual consumption into 11 buckets — from food and clothing to health care and recreation. What makes the report interesting is that it gives us a snapshot of the spending patterns of individuals in 18 countries. It tells us what people in different countries are spending most and least on…

Here are the highest, lowest and Australia’s spending percentages for each of the 11 buckets:

Bucket	Highest	Lowest	Australia

Food And Non-Alcoholic Beverages	India 34%	United States 6%	9%

Alcoholic Beverages, Tobacco And Narcotics	Russia 6%	Saudi Arabia - negligible	3%

Clothing And Footwear	Egypt 8%	Vietnam, Japan 3%	3%

Housing, Water, Electricity, Gas And Other Fuels	Turkey 24%	Russia 9%	19%

Furnishings, Household Equipment And Maintenance	Croatia 9%	India 3%	6%

Health	United States 18%	Ethiopia 2%	12%

Transport	India and South Africa 15%	Ethiopia 2%	10%

Communication	China 4%	Vietnam 1%	2%

Recreation And Culture	Finland and Australia 10%	Ethiopia 1%	10%

Education	Saudi Arabia 18%	Ethiopia 3%	9%

Restaurants And Hotels	Argentina, Australia 7%	Ethiopia and India 2%	7%

I have italicized the buckets where we spend the highest and lowest.

A few points from the above table:

1. Can’t believe that United States spends only 6% on Food And Non-Alcoholic Beverage.

2. We love Eating Out (Restaurants And Hotels) and Recreation (Recreation And Culture).

3. We spend a considerable amount for our utilities (Housing, Water, Electricity, Gas And Other Fuels)

What stands out for you in the above table…Share your thoughts.