Athens, September 7 (FinanceFlashNews) – While the Greek economy is showing signs of recovery, many households are still grappling with the high cost of living. Boosted by a resurgence in tourism, Greece’s economy is growing faster than many of its European Union counterparts. The Greek government, led by Prime Minister Kyriakos Mitsotakis, plans to make early repayments on bailout loans this year.
However, many citizens have yet to feel the benefits of this recovery. Kyriakos Giannichronis, a barista in Athens, says he has only about 150 euros left at the end of the month, despite earning more than the minimum wage. “Things seem to be getting better, but we don’t feel it,” he said.
Living standards in Greece remain low, even with the economic rebound. Yiannis Stournaras, Governor of the Bank of Greece, forecasts a 2% growth in the economy this year, outpacing much of Europe. But economist Nikos Vettas from the IOBE think tank cautions that Greece’s low baseline, following a decade of economic crisis and pandemic recession, makes this growth appear more significant than it is.
Households are further burdened by rising costs for housing and food, with inflation only now beginning to ease. “Living expenses have effectively wiped out the benefits of wage increases, leaving real incomes stagnant,” Vettas noted.
Mitsotakis’ government has blamed high energy prices, which spiked after Russia’s invasion of Ukraine in 2022, for the country’s continuing high cost of living. Greece, with a population of just over 10 million, had the second-lowest purchasing power in the EU last year, behind Bulgaria. The average income in Greece in 2023 was half the EU average.
Despite some improvements, like wage increases in the IT sector, other industries, such as hospitality, are still struggling. Many households continue to face difficulties, even as Greece’s net disposable household income ranks 16th in the EU, according to the country’s Ministry of Economy.
Keywords: Greek economy, Kyriakos Mitsotakis, tourism recovery, cost of living, inflation, wage growth.
