Greek household disposable income dropped by 9.3 pct in Q2

The disposable income of Greek households shrank an additional 3.1 billion euros in the second quarter of the year compared with the same three-month period in 2012, data published on Tuesday by the Hellenic Statistical Authority (ELSTAT) show.

The 9.3 percent year-on-year drop in disposal income from 33.2 billion euros to 30.1 billion euros from the second quarter in 2012 to the same period this year is attributed mainly to the 13.9 percent average reduction in salaries and a 12.4 percent drop in social benefits.

The data further show that state spending on social benefits declined to 29.4 percent of total spending in the second quarter of 2013 from 44.9 percent in the same period in 2012, while salaries shrank to 16.5 percent of total state spending from 24.1 percent last year.

In a further sign that Greek households are struggling under stringent austerity measures, ELSTAT reported that savings also dropped 8.7 percent in the second quarter of 2013.