Sydney, Nov 14: As the holiday season approaches, Australian families are gearing up to spend 10.69 percent more on Christmas this year, making Australia the fifth-highest country in terms of percentage increase, according to the annual Cost of Christmas study by WorldRemit.
The study, now in its third year, assesses the global financial impact of Christmas by comparing the average costs of food, gifts, and decorations to household incomes across 24 countries.
The findings indicate that Australians are expected to spend a whopping $1,863.86 during the festive season, with the average household allocating $596.00 for food, $822.00 for gifts, and $445.86 for Christmas decorations.
Notably, Australian families are projected to allocate 23.77 percent of their monthly salary to cover the costs of the holiday season.
In contrast, families in India are expected to be the least financially impacted, spending only five percent of their average household income.
Globally, families are anticipated to increase their Christmas spending by up to 24 percent compared to last year. The study includes new additions for 2023, namely Nepal and Italy.
Canada saw the most significant percentage decrease in Christmas spending at -17.65 percent, but Canadians still hold the top spot for overall spending at $1,413.23 CAD, equivalent to 41.6 percent of their monthly salary.
The United States experienced a 5.25 percent decrease in spending, with an average expenditure of $1,170.66 USD. Despite the drop, American families still rank fourth in holiday spending globally.
Cameroon and the Philippines are set to witness the largest spikes in Christmas costs, with expenses predicted to surge by 84 percent and 78 percent, respectively, compared to 2022. This increase is attributed to rising inflation rates in both countries.
Among the new entrants, Nepal and Italy, the former appears to be unaffected by the global trend, while Italy faces a 9.67 percent reduction in Christmas spending.
Country-wise Spending Breakdown:
- Total Year-Over-Year Difference: 10.69 percent
- Total Spend: AUD $1,863.86
- Food: AUD $596.00
- Gifts: AUD $822.00
- Decorations: AUD $445.86
- Percentage of Monthly Household Income: 23.77 percent
- Total Year-Over-Year Difference: -17.65 percent
- Total Spend: CAD $1,413.23
- Food: CAD $451.00
- Gifts: CAD $1,308.00
- Decorations: CAD $610.00
- Percentage of Monthly Household Income: 41.56 percent
- United States:
- Total Year-Over-Year Difference: -5.25 percent
- Total Spend: USD $1,170.66
- Food: USD $113.54
- Gifts: USD $826.12
- Decorations: USD $231.00
- Percentage of Monthly Household Income: 18.14 percent
- United Kingdom:
- Total Year-Over-Year Difference: -9.7 per cent
- Total Spend: £859
- Food: £100
- Gifts: £600
- Decorations: £159
- Percentage of Monthly Household Income: 23.2 percent
Year-on-year Christmas spending across other countries:
- Top 5 Increases:
- Nigeria: 23.71 per cent
- Dominican Republic: 22.25 per cent
- Zimbabwe: 21.65 per cent
- Spain: 14.44 per cent
- Australia: 10.69 per cent
- Top 5 Decreases:
- South Africa: -1.87 per cent
- USA: -5.25 per cent
- Cameroon: -5.43 per cent
- Netherlands: -9.53 per cent
- UK: -9.67 per cent
Country-wise Spending Per Category:
Cameroon is projected to be the most impacted country, with families spending close to 84 percent of their monthly income ( seven percent of annual salary) on Christmas, including a staggering 45.27 percent on decorations alone. Dominican Republic (47 percent) and Cameroon (45 percent) lead in spending over 40 percent of their average income on Christmas decorations, while Mexico devotes 29.53 percent of its average wage to festive decorations.
In terms of gifts, Mexico (29.53 percent) and the Philippines (26.11 percent) top the list, while India (1.99 percent) and Uganda (2.34 percent) spend the least.
The data, compiled by WorldRemit, underscores the diverse economic impacts of the festive season globally. The study covered 24 countries, analyzing the cost of food, gifts, and decor based on average family income.
Prices were researched online last Sept, and locals validated the data for accuracy.
Exchange rates were calculated on Sept 24, this year and percentage figures represent the overall budget in the local currency.
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