ELSTAT: Drop in Greek Household Disposable Income

greek householdsSince the country entered into recession, Greeks get poorer year by year. The austerity measures haven’t yet brought the promised growth, and unemployment hits record rates, while Greeks struggle to make a living.

According to a Hellenic Statistical Authority (ELSTAT) report, Greek households and non-profit institutions that serve households lost  an additional 3.1 billion euros in the second quarter of the year compared with the same three-month period in 2012.

The additional  9.3% drop in disposable income (from 33.2 billion euros to 30.1 billion euros) is attributed mainly to the 13.9% reduction in salaries and to a 12.4% drop in social benefits.

Moreover, state spending on social benefits declined to 29.4% of total spending in the second quarter of 2013, from 44.9% in the same period in 2012, while salaries shrank to 16.5% of total state spending from 24.1% last year.

As a result of the new drop in disposable income , the final consumption expenditure is decreased by 7.6%, from 35.4 billion 32.7 billion. While the savings rate, defined as the gross saving to the gross disposable income was -8.7% in the second quarter of 2013 compared with -6.7% in the second quarter of 2012.

At the same time, rising rates of unemployment, close to 30%, zero growth, but also a surplus in the current account is planned for 2014 at the Centre of Planning and Economic Research (KEPE).

According to the report of KEPE with the name “Economic Developments ,” recession in 2013 will stand at 3.55 %, while growth in 2014 is estimated to be almost zero (0.004%).

It is estimated that unemployment from 27.6% this year, will increase to 29.3% in 2014. Inflation is expected to be negative by 0.28% this year and 0.31% next year , while the surplus in the current account will stand at 3.42% of GDP in 2014 compared to 0.91% of GDP this year.