By Spiros Sideris – Nicosia
Greek households had further losses of EUR 1.4 billion from their disposable income in the second quarter this year compared with the second quarter last year, mainly due to the additional tax burden (in the second quarter compared with the first quarter of 2014, taxes on income and wealth increased by EUR 984 million).
Therefore, in the last five years, the losses in the household’s disposable income stood at EUR 12.6 billion (From EUR 43.4 billion in the second quarter of 2009, to EUR 30.8 billion in the second quarter this year).
This figure results from the quarterly non-financial accounts for institutional sectors, released by the Hellenic Statistical Authority.
According to the research, in the second quarter this year, the disposable income of households and non-profit institutions serving households dropped by 4.3% compared to the second quarter of 2013, to EUR 30.8 billion from EUR 32.2 billion.
As was expected, there was a further drop in consumer spending by 1.6% or EUR 500 million. (to EUR 32.7 billion from EUR 33.2 billion).
Regarding the savings rate, defined as gross saving to gross disposable income, it stood at -6.2% from -3.2% in the second quarter last year.
The last positive sign (increase) in household disposable income was in the second quarter of 2009, while in consumer spending, the last increase was recorded in the first quarter of 2010.
In contrast, what’s positive is the fact that the gross fixed capital investments of non-financial companies increased in one year by EUR 400 million or 10.8% (to EUR 3.7 billion in the second quarter this year from EUR 3.3 billion last year).
The rate of investment, defined as gross fixed capital formation to gross value added was 25.9% compared to last year’s 23%.
At the same time, there was a reduction in the deficit of the external balance of goods and services by EUR 1.2 billion (to EUR 3.1 billion from EUR 4.3 billion), since exports of goods and services increased by 0.7% while imports of goods and services decreased by 0.5% compared to the second quarter 2013.
Due to the reduction of the deficit of the external balance of goods and the reduction of the level of net income and (current and capital) transfers received from abroad, the global economy showed a net borrowing from abroad in the region of EUR 3.6 billion, from EUR 4, 5 billion in the second quarter of 2013.
At the level of General Government, net borrowing amounted to EUR 418 million in the second quarter of this year, from the EUR 2.3 billion in 2013.