Greek households are increasingly anxious about their financial outlook, according to the latest monthly economic sentiment survey by the Foundation for Economic and Industrial Research (IOBE). Findings indicate that many are already relying on savings to cover daily expenses, signaling deepening economic concerns.
Despite a rise in private savings, the IOBE survey shows growing household concern. Many Greeks don’t expect to save or make major purchases in the next year, and some plan to dip into deposits. This bleak outlook aligns with Eurostat and ECB findings, placing Greece near the bottom in EU purchasing power.
Consumer Confidence Slumps Further
According to IOBE, Greece’s Consumer Confidence Index fell to -46.9 points in June, down from -42.7 in May. This makes Greek consumers the most pessimistic in the European Union, outpacing even Estonia (-35.6) and Hungary (-29.6).
All key indicators worsened in June, including expectations for the economy, household finances, major purchases, and savings. Notably:
• Saving prospects hit new lows: The index for saving intentions dropped to -67.7 from -65.0 in May, with 84% of households unlikely to save—compared to EU and Eurozone averages of +7.0 and +7.5.
• Growing financial strain: 61% of households say they’re “just getting by,” 11% are drawing on savings, 10% are in debt (up from 8%), and only 20% save regularly.
• Uncertain outlook: Nearly 60% find it hard to predict their financial future, up from 57.7% in May.
• Reduced spending plans: Intentions to make major purchases fell to -51.5 from -43.9. Now, 60% plan to cut spending, up from 54%.
• Worsening financial expectations: The outlook for household finances dropped to -42.8 (from -38.7), with 56% expecting a decline and only 6% foreseeing improvement. EU and Eurozone averages were -5.1 and -5.3.
• Past finances also declined: Households rated the past year’s finances at -48.9 (vs. -46.8), with 64% reporting a worsening situation, while just 3% saw improvement. EU and Eurozone averages were -11.6 and -12.0.
Concerns Over Unemployment and Inflation
The IOBE survey shows rising concern over unemployment and inflation. The unemployment expectations index rose to +11.7 (from +9.8), with 34% of households expecting joblessness to grow and only 21% foreseeing a decline. Inflation worries persist, as 64% anticipate prices will stay high or rise further, pushing the price expectations index to +34.5.
Source: Tovima.com
