Disposable and discretionary income

Consumers in Greece and worldwide feel even more financially stressed, despite the de-escalation of inflation, which, in fact, is expected to continue, pointing to a limited increase in consumption according to the first indications for 2024.

The latest data on savings present food for thought for the Greek government policymakers regarding its exit out of the woods. In 2022, people in the EU saved on average 12.7% of their disposable income. The rate was significantly lower than in 2021 (16.4%), and closer to the values before Covid-19 pandemic.

The share of people in Greece who are overburdened with housing costs is 32.4%, compared to 21.9% in Denmark and 15.3% in the Netherlands, according to the latest Eurostat survey for 2021.

Disposable household incomes rose by 10.2% in the third quarter of 2022, reaching 37.7 billion euros, compared to 34.2 billion euros in the same period last year, according to data the Hellenic Statistical Authority (ELSTAT) released on Tuesday.

The recovery continued in the third quarter of 2021, however the resurgence of the pandemic and the energy crisis pose downside risks for the fourth quarter of 2021 and jeopardize the disposable income of households.

This is the main conclusion of Eurobank's weekly study "7 DAYS ECONOMY".

The Minister of Development, Adonis Georgiadis, appeared reassuring that the measures announced by the government for the relief of households will compensate the burden from the wave of price increases in the market.

Ljubljana – Household deposits at banks rose by over EUR 2 billion to a record EUR 23 billion in the epidemic year of 2020 from 2019, the Slovenian central bank said on Tuesday. It attributed the rise to the labour market measures taken during the epidemic, which enabled income growth. But since many shops were closed, much of the income was not spent.

Bulgarians plan to set aside 25% of their income, or an average of € 269 per household, for festive expenses over Christmas, according to data from the 13th edition of the international Christmas Barometer'2020 survey.

Greece remains the European country with the highest burden on households regarding home expenditure in proportional terms, with its rate at four times the European Union average.

The financial crisis may have diminished Greeks' disposable incomes, but not enough for them to give up the popular pastime of eating and drinking out.