Incomes still haven’t recovered
This year may be the sixth since Greece’s emergence from the bailout mechanism, but the return of incomes to pre-2010 levels is far from being a reality.
One in three households has a monthly income of up to 1,450 euros, when the corresponding ratio in 2008 was about one in four, while now only 11.46% of households have a monthly income of more than €3,500, a percentage that in 2008 was double.
The figures are even more revealing: In 2008 there were 907,176 households with an income above €3,500, in 2018 just 280,970 and in 2022, 471,151.
Conversely, while in 2008 only 4.75% of households had an income up to €750, this percentage was 12.75% in 2018. Since 2021, it has dropped below 10% (7.64% in 2021), but there is still a long and rocky way to go despite the recovery of the national economy.
This situation clearly affects consumption as well, with monthly expenditure on the one hand being significantly reduced compared to the pre-bailout era and on the other hand focused mainly on food and housing, with expenditure on apparel and other categories of goods and services in constant decline, hurting the retail businesses operating in these industries.
According to the latest available data from the family budget surveys of the Hellenic Statistical Authority (ELSTAT), as analyzed in the annual report by the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), the share of the lowest income category “up to €750,” from 4.75% in 2008, increased to 12.75% in 2018. This reflects the effects of the crisis and the bailout policies on income distribution.
However, in 2019-2022 the participation of households in the income category “up to €750” gradually shrank, declining to 7.64% in 2022.
The income category “from €751 to €1,100” is similarly spread, as from 17.94% in 2018 it fell to 11.46% in 2022. The same applies to the third category (“from €1,101 to €1,450”), which, from 16.71% in 2018, decreased to 14.46% in 2022.
