ELSTAT: 0.9% decrease in the real disposable income of Greeks in the fourth quarter – Economic Post

The real disposable income of Greek households showed a decrease of 0.9% during the last quarter of 2023, while their savings continue to decline and even with a significant negative rate (-8.9%). Both of the above are due to the enormous precision that has engulfed the Greek economy for a long time.

In particular, according to ELSTAT, during the 4th quarter of 2023, the disposable income of the sector of households and non-profit institutions serving households (MKIEN) increased by 7.5% compared to the corresponding quarter of the previous year, from 33 .75 billion euros to 36.27 billion euros.

Eurostat: Below zero savings in Greece

However, the average inflation of the corresponding quarter was at 3.3% (3.4% October, 3% November, 3.5% December) which implies that in order to calculate the real disposable income (and not the nominal) 2.4% should be subtracted from 3.3%, resulting in a loss of 0.9%.

The saving rate of households and MFIs, defined as gross saving to gross disposable income, was -8.9% in Q4 2023, compared to -10.6% in Q4 2022, according to the TtE.

In the same period, final consumption expenditure by households and non-profit institutions serving households increased by 5.8% compared to the corresponding quarter of the previous year, from €37.3 billion to €39.5 billion. according to data from the Greek Statistical Authority.

Investments

According to the same data, during the 4th quarter of 2023, the gross fixed capital investments of the sector of non-financial companies amounted to 3.8 billion euros.

The sector’s investment ratio, defined as gross fixed capital formation to gross value added, was 20.1% compared to 19.9% ​​in Q4 2022.

Also, in the 4th quarter of 2023, a deficit in the external balance of goods and services of 6.23 billion euros was recorded, compared to a deficit of 8.45 billion euros recorded in the 4th quarter of 2022.

In addition, during the 4th quarter of 2023, a surplus was recorded in the external balance of primary income, current and capital transfers of 1.11 billion euros, compared to a surplus of 2.07 billion euros recorded in the corresponding quarter last year. As a result of the above, the overall economy showed a net borrowing of 5.13 billion euros during the 4th quarter of 2023. In the corresponding quarter last year, the net borrowing amounted to 6.38 billion euros.