On 27 September 2024, the annual ELSTAT report on family budgets was published. You can find it at the following link: Annual ELSTAT Report.
It is interesting to compare this with the pre-crisis period. Let me add some comments, combining them with the ELSTAT findings:
- Reduced expenditure: Households are forced to spend much less on their basic needs compared to the pre-crisis period (2008). This not only means that fewer needs are met, but also that resources are taken away from the market, which particularly affects small businesses, such as those in the clothing and catering sectors.
- Inflation “wipes out” the increases: Inflation over the last two to three years has eroded any wage growth, with a particular burden on lower-income households, as a large proportion of their expenditure is on food items, where price increases are higher than the general average.
- Inequalities in the distribution of wealth: Despite GDP growth, money is distributed unequally, with inequality increasing all the time. The remuneration of labour is deteriorating, while the share of profits is increasing. Specifically, the data from the GAO show that:a. The taxable income of individuals increased from 87 billion euros in 2012 to 96 billion euros in 2022 (an increase of 10% in current prices).
β. The taxable income of legal entities (companies) increased from 10 billion euros in 2012 to 25 billion euros in 2022 (an increase of 250%!!!!).
ELSTAT observations (more at the link):
- The average annual household expenditure on purchases in 2023 amounted to 20,223.36 euros (1,685.28 euros per month), an increase of 5.3% compared to 2022.
- The 50% of households spend over €1,315 per month.
- Households living in rented accommodation spend on average 16.8% of their budget on rent.
- 55.8% of the expenditure of the poorest 20% of households is on food and housing, while the corresponding figure for the richest 20% is 24.8%.
- The highest average annual expenditure was recorded in Attica with 23.325,96 euros, while the lowest in Central Greece with 14.052,24 euros.
- Compared to 2008, the average annual household expenditure in 2023 appears to be reduced by 20.5%.
