Disposable income of households fell 10.3 pct in one year

By Sotiris Nikas

The reduction of Greek households’ disposable incomes in 2013 compared with 2012 amounted to a total of 14 billion euros, the biggest since the start of the crisis according to data released by the Hellenic Statistical Authority (ELSTAT).

Disposable cash amounted to 122.2 billion euros last year, from 136.2 billion in 2012 – i.e. a 10.3 percent reduction within just one year.

The loss since the start of the crisis is even more staggering: In 2009 the disposable income of Greek households had added up to 170.7 billion euros.

In the years that followed and up to last year, with the application of austerity measures through the reduction to salaries, pensions and benefits and the increase in taxation, households have lost a total of 48.4 billion euros – i.e. an average of 12.1 billion euros per year.

On the reduction recorded last year, the statistics office says in its report that it was due to the reduction in workers’ pay by 10.7 percent year-on-year and the 12.3 percent drop in the amount of social benefits that households received.

Regarding consumption, ELSTAT data showed that it has followed the course of disposable incomes: Households’ consumer spending declined by 4.8 billion euros or 3.6 percent last year from 2012, amounting to 129.9 billion euros, against 134.7 billion in 2012.

The year with the highest consumer spending by households was 2008, when 164.6 billion euros was spent.