Disposable incomes keep shrinking


Households’ disposable income fell again in the second quarter of the year compared to the same period in 2015, while consumer spending recorded a decline too. In contrast, investments posted a steady rise year-on-year, Hellenic Statistical Authority (ELSTAT) figures showed on Wednesday.

The disposable income of households shrank 0.7 percent year-on-year, amounting to 29.7 billion euros against 29.9 billion in April-June 2015. Notably, households paid 4.7 percent more for social security contributions this year than in 2015, and consumer spending dropped by 1.1 percent, from 32.2 billion to 31.8 billion euros in Q2 this year.

The savings rate of households – calculated by dividing household savings by household disposable income – stood at -7.2 percent in the second quarter this year, against -7.6 percent in 2015.

There were positive signs from capital investments, as ELSTAT data showed an 18.3 percent annual rise in the April-June period to 3 billion euros, against 2.5 billion a year earlier.

The external balance on goods and services showed a deficit of 400 million euros, against a surplus of 100 million euros recorded last year.