Eurostat: Disposable income increased in Greece

A significant increase in gross disposable income, stagnation in savings and a large drop in fixed capital investments, finds for Greece in the fourth quarter of 2023, Eurostat.

Real per capita household consumption fell slightly by 0.1% in the euro area in the fourth quarter of 2023, after remaining flat in the previous quarter, according to data released today by the European statistics authority. Real per capita household income rose 0.6% in the fourth quarter of 2023, following a 0.3% decline in the third quarter of 2023.

In the EU, real household consumption per capita was flat in the fourth quarter of 2023, after rising 0.4% in the previous quarter. At the same time, real per capita household income rose 0.4% in the fourth quarter of 2023, after remaining flat in the third quarter of 2023.

According to Eurostat, gross disposable income and savings rate increased in Greece, but investment decreased

Components of gross disposable income

In the fourth quarter of 2023, gross disposable income of households (in nominal terms, seasonally adjusted) increased by 1.3% in the euro area and by 1.2% in the EU. The increase is mainly explained by the large positive contribution of employee wages in both the euro area and the EU.

In contrast, current taxes and net social contributions were the only negative factor. Greece recorded the third highest rate of increase in gross disposable income (3.4%) after Spain (5.3%) and Hungary (4.1%)

Savings rate increased

In the fourth quarter of 2023, the savings rate increased by 0.7 percentage points (pp) in the euro area and by 0.5 percentage points in the EU, compared to the previous quarter.

Among the Member States for which data are published, the household savings rate increased in five Member States, remained stable in two and decreased in five. Spain had the largest increase (+3.4 p.p.), followed by Italy (+1.0 p.p.) and Austria (+0.9 p.p.).

At the same time, the largest decreases were observed in Denmark (-1.8 p.m.), Portugal (-1.7 p.m.) and Ireland (-1.6 p.m.). In Greece, a marginal change of 0.2% is recorded.

Investments decreased

In the fourth quarter of 2023, the household investment rate fell by 0.2 p.p. in the euro area and by 0.1 p.m. in the EU, compared to the previous quarter.

Among the Member States for which data are published, the household investment rate increased in four Member States, remained stable in two (Netherlands and Spain) and decreased in the remaining six. Ireland had the largest increase (0.4 p.p.), followed by Italy (0.2 p.p.), while the largest decreases were seen in Greece (-0.7 p.p.) and Belgium (-0.3 p.m.).

Regarding gross fixed capital investments, a decrease of 0.3% was recorded in the Eurozone and an increase of 0.2% at the level of the European Union. Greece recorded the biggest drop with a plunge of 13.1%, with Sweden following in second place with a much smaller percentage of 3.1%.

Real per capita household income is defined as the adjusted gross disposable income of households, in nominal terms, divided by the total population and the deflator (price index) of household final consumption expenditure.

Real per capita household consumption is defined as real household final consumption expenditure, in nominal terms, divided by the total population and the deflator (price index) of household final consumption expenditure.

Source: OT