Households spend more than they earn

Greek households spent €4 billion more than their disposable income in 2024, according to data from ELSTAT. This means families either used up past savings or borrowed to cover their expenses. The figures show a faster rise in final household consumption compared to disposable income, continuing the long-standing trend of negative savings in Greece.

Specifically, final household and non-profit consumption rose by 4.6% in 2024 compared to 2023, while disposable income increased by 4.5% over the same period.

In absolute terms, disposable household income reached €158.6 billion in 2024 (up from €151.7 billion in 2023), whereas final consumption rose from €155.4 billion to €162.6 billion. In short, households spent €4 billion more than they earned.

The Savings Challenge

ELSTAT data show that household savings remained negative in 2024, with the savings rate at -2.5%, compared to -2.4% in 2023 and -5% in 2022. Greece has been in negative savings territory since 2012, with the exception of 2020–2021, when consumption plummeted during the pandemic.

The savings rate is defined as the ratio of gross savings to gross disposable income.

Why Greeks Don’t Save

A study by the Athens University of Economics and Business (AUEB), funded by Eurobank, found that Greece ranks last among OECD countries in household savings.

The average annual savings in Greece amount to €1,076.

For households with two adults and children, the figure is negative (-€2,159).

Pensioners save the most (€2,248 annually).

Employees save around €542, while self-employed individuals just €63 per year.

The main reasons cited for low savings include:

High pension levels prior to 2010.

Rising housing costs.

Intergenerational wealth transfers, especially property gifts, which reduce the need to save for home ownership.

Tax evasion, more common among self-employed workers.

Corporate Investment and Borrowing

In the non-financial corporate sector, the investment ratio—defined as gross fixed capital formation to gross value added—stood at 25.2% in 2024, slightly up from 25.1% in 2023.

Overall, the Greek economy recorded net borrowing of €13 billion from abroad in 2024, compared to €12.6 billion in 2023.

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