Issued every five years and considered the second most important statistical product, and its results contribute to the calculation of several social and economic indicators

GASTAT Releases the Results of the Household’s Income and Expenditure Survey (2018)

On Wednesday Sha’aban 26^th, 1440 H (May 1^st, 2019), the General Authority for Statistics (GASTAT) announced the results of the Household’s Income and Expenditure Survey (2018) in a press conference held in GASTAT’s headquarters in Riyadh city. At the beginning of the conference, HE the President of GASTAT, Dr Fahad Bin Sulaiman Altekhaifi, valued the main role of the households selected in the survey sample in reaching statistical results of high importance in a number of developmental directions. The Household’s Income and Expenditure Survey is one of the most important statistical household products of statistical agencies in all countries. The results of this survey provide the necessary statistical data for the development of economic and social development programs and plans aimed at achieving the well-being and progress of the communities. The data of this survey are the basis of many studies and research conducted by government agencies and international organizations. The statistical agencies classify it as one of the field surveys (households sampling) in social statistics, and provide data on patterns of expenditure in society and show the impact of demographic, social and economic factors on families.

According to international recommendations, the Household’s Income and Expenditure Survey is carried out every 5 years. It has been implemented in Saudi Arabia in 1970, 1977, 1980, 1985, 1999, 2007, and 2013). The collection of data takes (five quarters of two calendar years). The current survey was carried out within 13 months starting from February 28^th, 2017 until March 31^st, 2018.

HE explained that the length of data collection is due to the fact that many of the variables of the study are vulnerable to different seasons during the months or seasons of the year. There are goods and services people spend on during certain months of the year more than others. The household interview in the survey does not end with one field visit, but needs a number of visits to follow-up with the household during the period specified, to collect all the required data.

Altekhaifi added that all these factors necessitate the follow-up of field implementation for more than a year, including all seasons to measure the change in expenditure patterns and levels due to seasonal, occasional and periodic changes, which can be measured accurately in a relatively long period of time compared to the rest of the household surveys conducted by GASTAT throughout the year.

The president of GASTAT confirmed that the Authority has fulfilled its obligations in implementing the international standards adopted for indicators of household income and expenditure in order to enable international organizations to conduct a periodic comparison between all countries. The results of the survey, which were announced today, are the basis for a number of socio-economic statistical products. The results of the survey provide the data of qualitative weights used in the preparation of the consumer price index. Through this survey, the basket of goods and services is updated, which is a relatively fixed collection of consumer goods and services which are estimated on an annual basis. This basket is used to track inflation in each country. The goods of the basket are periodically adjusted based on the results of the Household’s Income and Expenditure Survey to take into account changes in consumer habits. The basket of goods and services is used as a basis to calculate the Consumer Price Index and wholesale prices.

The results of this survey also provide data on the patterns of expenditure in society, the impact of demographic, social and economic factors on the household, provide data on household expenditure on goods and services as a component of the final expenditure in GDP, and provide data necessary for national accounts related to the final consumption and household sector income.

He added that the results of the survey contribute mainly in identifying patterns of expenditure in society and indicating the impact of demographic, social and economic factors on them. It also provides policy and decision makers with all statistics on Saudi and non-Saudi household expenditure on consumer goods such as food, drinks, clothes, as well as non-consumer goods, such as remittances and capital goods such as purchasing of buildings, lands, stocks, donations, etc. Through these statistics, weights are provided showing the importance of consumer expenditure items, and it can be used to identify levels of income distribution and expenditure levels, by category (low, medium, high).

On the other hand, GASTAT confirmed that the results of this survey play a major role in supporting projects related to income and expenditure of households such as social protection, social development and family affairs projects. It also contributes to the development of important social indicators such as indicators of sustainable development goals, human development indicators and other international indicators.

The results of the Household’s Income and Expenditure Survey (2018) showed that the average monthly income of the household reached 11,984 SAR (eleven thousand nine hundred and eighty-four riyals), while the average monthly income of the Saudi household reached 14,823 SAR (fourteen thousand eight hundred and twenty-three riyals).

The results of the survey also showed that the average monthly income of "individuals with income" reached 6,346 SAR (six thousand three hundred and forty-six riyals), while the average monthly income of "Saudi individuals with income" reached 7,940 SAR (seven thousand nine hundred and forty riyals).

In terms of expenditure, the average monthly expenditure of households in Saudi Arabia reached 12,818 SAR (twelve thousand eight hundred and eighteen riyals), while the average monthly expenditure of the Saudi household reached 16,125 SAR (sixteen thousand and one hundred and twenty-five riyals). The average monthly “consumption” expenditure reached 11,728 SAR (eleven thousand seven hundred and twenty-eight riyals) , While the monthly “consumption” expenditure of the Saudi household reached 14,584 SAR  (fourteen thousand five hundred and eighty-four riyals).

During the press conference, GASTAT clarified that the Authority made a number of measures to ensure the quality of the data. GASTAT used the method of the direct visit to the household, used tablets to complete survey questionnaire data based on the specific time frame, and applied (data auditing rules) to ensure consistency, accuracy and logicality of the data on the survey form (electronic rules that detect the discrepancy of answers). They have been built by linking the logical relationship between the answers to the questionnaire and its variables so that the field researcher and the observer can detect any error directly through the form during the collection of data from the head of the household. These programmed rules do not allow errors to be passed if the answer is inconsistent with information, or with another answer in the form. The data was verified by reviewing the collected data. All the work areas were subjected to a process of monitoring and reviewing from the data quality room at the headquarters of GASTAT. A sample of households were contacted by telephone and asked some questions in the questionnaire to verify the integrity of the researcher data, obtain lost data that have not been received yet if any, and validated the location where the questionnaire have been completed by matching the coordinates with the coordinates recorded in the sample file.

On the other hand, GASTAT published the results of the Household’s Income and Expenditure Survey (2018) on its official website www.stats.gov.sa. The result’s data has been provided in the form of open templates to be utilized in studies and analysis. It is worth mentioning that GASTAT intends to carry out the survey every three years from 2021 in accordance with the local, regional and international requirements of the data.