The annual survey carried out by the Small Enterprises’ Institute (IME) of the Hellenic Confederation of Professionals, Craftsmen & Merchants (GSEVEE) reveals that the worsening of Greek households’ finances has led to big cuts in expenditure, especially for food, clothing, footwear and entertainment.
According to the IME-GSEVEE survey carried out in collaboration with MARC S.A., one in three households fear loosing their home due to overwhelming financial obligations. Specifically, 34.8 percent of households are delaying the payment of their debts, while 41.7 percent of the population does not have sufficient income to meet their upcoming obligations.
Around 28 percent of Greek privately owned properties were purchased with a mortgage, meaning that around 1 million households are running into debt. In total, 44.3 percent of Greeks maintain some kind of financial commitment to the bank, while one in ten households have been forced to liquidate some or all of their assets in order to cope with the financial crisis.
The survey indicates that around 1.4 million households (40.2 percent) have at least one family member unemployed. Only 9.8 percent of these receive unemployment benefit.
Almost every Greek household (94.6 percent) has had its income reduced during 2010-2013, while in the previous year alone, 82.4 percent of the population reported having their income reduced. The reduction in average income has now reached 39.47 percent.
The IME-GSEVEE report concludes that 48.6 percent of households are supported by pensions alone, 35.9 percent by wages and just 10.3 percent from profits earned in freelance and business activities.
Meanwhile, shrinking incomes have had an impact on consumption, with 63.7 percent of households cutting back on food and 90.3 percent reducing expenditure on clothing and footwear, with 36.5 percent of the population buying lower quality products. Eating out, visiting nightclubs or attending artistic performances has been reduced in around 90 percent of households. Over 75 percent of households have cut back on heating and transport costs.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
