Greek Disposable Income Slightly Up, Purchasing Power Erodes: ELSTAT

Greek household disposable income posted a slight rise of 1.4%, according to data released today by the Hellenic Statistical Authority (ELSTAT).

The average inflation for the October–December 2024 quarter reached nearly 2.5%, translating into a 1.1% decline in real disposable income. This highlights the erosion of household purchasing power due to the persistent cost-of-living crisis affecting consumers.

At the same time, households’ savings outlook worsened, indicating that many are dipping into their reserves to make ends meet. ELSTAT data show that the gross savings rate — calculated as gross savings relative to gross disposable income — fell to -4.1% in the fourth quarter of 2024, compared to -1.1% in the same period a year earlier.

ELSTAT reported that in Q4 of 2024, the disposable income of households and non-profit institutions serving households (NPISHs) rose by 1.4% year-on-year, from €38.60 billion to €39.13 billion.

In terms of consumption, final household and NPISH spending increased by 4.4% compared to the fourth quarter of 2023, rising from €39.03 billion to €40.72 billion.

The savings rate, defined as gross savings over gross disposable income, stood at -4.1% in Q4 2024, down from -1.1% in Q4 2023 — a sign of deepening financial strain on households.

In the area of investments, gross fixed capital formation by the non-financial corporate sector (S.11) totaled €4.85 billion in the fourth quarter of 2024. The sector’s investment ratio — measured as gross fixed capital formation over gross value added — stood at 24.1%, up from 22.9% in the same period the previous year.

Meanwhile, the general government sector (S.13) posted a net lending position of €1.12 billion in the fourth quarter of 2024, compared to a net borrowing of €0.02 billion in the fourth quarter of 2023.