Cost of Coffee Index - CEE vs Asia

COST OF COFFEE INDEX – CEE VS ASIA

The Cost of Coffee Index reveals that based on the monthly disposable income, a person with average income in Hungary can afford 150 cups of long black Coffee (at Costa or Starbucks) while in Singapore a person with average income can afford about 1550 cups of Starbucks coffee (In Singapore cost of coffee is about S$2.4 while the median monthly income is S$3,700). This inequity may be due to recent economic changes and policies (governmental interventions). While Asian economies have been booming in the last two decades, a number of countries in Central and Eastern Europe are struggling. In Romania, Bulgaria and Hungary about 20% of the people under 25 are while the national average unemployment rates are around 10%. In addition, while the social costs (social security, taxes) account to about 40-50% of the income in most European Countries the individual income tax rates in Singapore and Hong Kong are still single digits for the first USD7,000 per month, leaving enough money in the pocket of the citizens. Since citizens have large disposable income for their own discretion, they can stimulated the economy by consumption.