The average household disposable income shrank by 4.3 percent year-on-year in the second quarter of 2014, leading to a 1.6 percent reduction in consumption and a further drop in money saving rates, according to Hellenic Statistical Authority figures released on Monday. Nevertheless investments posted an increase.
Total disposable income dropped to 30.8 billion euros, from 32.2 billion in Q2 2013, and household consumption declined to 32.7 billion euros from 33.2 billion, meaning that households are also eating into their savings.
At the same time the savings rate of households – i.e. the ratio of gross bank savings to gross disposable income – amounted to -6.2 percent, much worse than the -3.2 percent rate registered during the April-June 2013 period.
However the statistics show that the gross investments of non-financial companies grew by a significant 10.8 percent in Q2, reaching 3.7 billion euros against 3.3 billion a year earlier. The investment rate – i.e. the ratio of gross investments to gross added value – amounted to 25.9 percent, compared with 23 percent in Q2 of 2013.
Data also showed that the net loan requirements of the general government sector fell to just 418 million euros in Q2, from 2.3 billion in Q1.