Greece is once again in the international press. This time Bloomberg in an article titled: «Greeks cannot afford summer holidays, even after economic recovery», dealt with the accuracy in our country deconstructing the Mitsotakis account.
On the occasion of the inability of Greeks to go on holiday, the international instrument dealt with Kyriakos Mitsotakis' empty promises to reduce prices with communication tools such as implementation «Posokanei», indicating characteristics: «Last week, the government launched a website and an application named «How much is it?», where citizens can compare prices daily for 8,700 products, such as food and baby care products. Although the data is still in the process, Mr Mitsotakis said that Greek consumers now have another one. «gun» combat against cost living».
However, the report continues: «Implementation shows that many products are more expensive than in richer European countries, while others are cheaper. The lowest price for a popular men's deodorant roll-on, for example, was EUR 2,71, almost a euro more expensive than the corresponding product in the United Kingdom, although similar to the usual price in Germany. It is also worth noting that some local products, such as yogurt, have a higher price at a Greek supermarket»By breaking the government's account with the hard language of numbers.
While the government often argues that inflation is exclusively imported and retreating, Eurostat data systematically show Greece in the highest positions in the Eurozone and Bloomberg says: «Inflation, meanwhile, is among the highest in the eurozone, while the average annual salary, about 18,000 euros (20,850 dollars), is less than half the European Union average».
While he continues: «The combination of supply chain disorders caused by the pandemic and shocks from the conflicts in Ukraine and the Middle East has led to an increase in prices everywhere. In Greece, as in other European countries, this problem is also exacerbated by the lack of housing», bringing back to the fore and the problem of housing crisis, which clips the monthly income of Greeks: «The Greeks averaged 35.5% of their available family income for housing costs in 2024, according to the most recent data available. In almost a third of households, this figure exceeded 40%, more than three times the EU average».
The Greek consumer eventually has the lowest real standard of living, despite any nominal growth indicators shown as: «While household income increased thanks to job creation and wage growth by 12% between 2019 and 2024, consumer prices rose by over 16% during the same period».
Blomberg's publication
Greece's recovery from the economic crisis of about the last decade has received praise from both eurozone countries and investors. However, behind the new era of positive economic indicators lies a fall in the standard of living, which even deprives relatively wealthy Greeks of the ability to benefit from this recovery.
The cost of living is a burden for the populations throughout Europe, which is exacerbated by the recent sharp rise in energy and food prices due to the Middle East war. Few countries, however, stand out as much as Greece in terms of the gap between the performance of the economy and the reality for households.
Greece is growing faster than many other European countries, its budget is surplus and is expected to no longer be the continent's most indebted country until next year.
Inflation, meanwhile, is among the highest in the Fn eurozone, while the average annual salary, about 18,000 euros (20,850 dollars), is less than half the European Union average.
Together with Bulgaria, Greece is in the EU's last position as regards per capita gross domestic product and purchasing power. The country also has the largest proportion of people at risk of poverty or economic marginalization, after its northern neighbour.
With the election expected by next summer —polls suggest they may not result in a clear result— Prime Minister Kyriakos Mitsotakis has defined the treatment of discrepancies in indicators as the top priority of his government.
The government has already implemented wide tax reductions and, more recently, various packages of measures to limit energy and food prices after the start of the war in Iran. However, only 7% of respondents in a poll broadcast by the Greek television station «Alpha TV» On 16 June they stated that their economic situation had improved last year.
Economic growth, which currently stands at 2% a year, must have an impact on the daily lives of citizens, Mr Mitsotakis said this month. «Improving macroeconomic indicators must be translated into even more tangible benefits for all», report.
Last week, the government launched a website and an application named «How much is it?», where citizens can compare prices daily for 8,700 products, such as food and baby care products. Although the data is still in the process, Mr Mitsotakis said that Greek consumers now have another one. «gun» combat against the cost of living.
Implementation shows that many products are more expensive than in richer European countries, while others are cheaper. The lowest price for a popular men's deodorant roll-on, for example, was EUR 2,71, almost a euro more expensive than the corresponding product in the United Kingdom, although similar to the usual price in Germany. It is also worth noting that some local products, such as yogurt, have a higher price in a Greek supermarket.
The combination of supply chain disorders caused by the pandemic and shocks from the conflicts in Ukraine and the Middle East has led to an increase in prices everywhere. In Greece, as in other European countries, this problem is also exacerbated by the lack of housing.
The Greeks averaged 35.5% of their available family income for housing costs in 2024, according to the most recent data available. In almost a third of households, this figure exceeded 40%, more than three times the EU average.
Part of the problem is that, according to Nicos Vetta, director general of the Foundation for Economic and Industrial Research, a think tank in Athens studying the Greek economy, there were few or no constructions or investments in the real estate sector after the outbreak of the economic crisis in Greece in 2010. This has only changed in the last five years.
«This implies a delay in the offer that is becoming increasingly intense, as the offer has not been adapted to demographic changes»Mrs. Vettas said. «There is no general shortage of housing in the country, but there is a shortage of housing in specific areas and with appropriate characteristics and size».
While household income rose thanks to job creation and wage growth by 12% between 2019 and 2024, consumer prices rose by over 16% over the same period.
«Price increases, including housing, food and energy, have put pressure on sections of the population, which do not see how this pressure will be relieved in the near future»Mr. Vettas said.
However, expenditure figures outline a more complex picture and may reflect another legacy of the Greek crisis that the government is trying to address: tax evasion. Greeks spend more than six of the 27 EU countries, suggesting that there is money elsewhere. The Governor of the Bank of Greece, Giannis Stournaras, said tax evasion represents 20-21% of Greece's GDP, compared to 15-17% in the rest of Europe.
Στη συνέχεια, υπάρχει το ζήτημα του πόσο γρήγορα οι επιχειρήσεις αυξάνουν τις τιμές, σύμφωνα με τον δικηγόρο Διονύση Αλεβρομαγείρα. Ο 44χρονος διατηρεί το δικό του δικηγορικό γραφείο και επίσης αγωνίζεται να διατηρήσει τον τρόπο ζωής που είχε, περιορίζοντας τις δαπάνες του σε τομείς όπως η ψυχαγωγία και η ένδυση.
«Το πραγματικό πρόβλημα είναι ότι δεν γίνονται ουσιαστικοί έλεγχοι στην αγορά και οι τιμές αυξάνονται συνεχώς», δήλωσε ο Αλεβρομαγειράς. «Πρέπει να υπάρχουν ελεγκτές που να περιφέρονται και να διενεργούν αυστηρούς ελέγχους στις επιχειρήσεις.»
