Disposable income

According to a report by a real estate agency cited by Euronews, one in six Europeans, or 16%, have had to reduce their food intake and cut back on basic living expenses in the past year to manage their housing bills. More than a third, specifically 37%, stated that while they pay their housing costs, they are left with little disposable income.

Many households in Greece had to cut back on basic food items in 2023 so they could cover other needs, under the suffocating pressure of shrinking disposable income. This, of course, does not mean that they paid less, as the average monthly expenditure for almost the same items increased.

Per capita real disposable income of Greek households shrunk 1.9% in the first quarter of 2024 compared to the final quarter of 2023, data released Monday by the Organization for Economic Cooperation and Development show.

This is the greatest drop among the 38 OECD members, which, on average showed real per capita disposable incomes rising 0.9%.

Eurostat estimates the average disposable income in real prices last year in Greece increased by 2% to 4%, with the growth in nominal prices being much higher, over 5%.

The main causes are the increase in the basic salary, the declaration of more income by freelancers and traders thanks to the widespread use of electronic payments, as well as the handout policies.