2.5 million Greeks – approximately one fourth of the population – now live at risk of poverty, the highest percentage in Europe. On average, family spending has dropped by close to a third (32%) since the beginning of the economic crisis in 2008 with a 12% drop in average monthly spending occurring between 2011 and 2012.
This means of course that for many families the drop was much greater – especially given that the rich / poor divide has grown, meaning that poorer families are disproportionately affected.
These depressing figures reflecting a severely depressed economy come from the annual study by the Hellenic Statistical Authority (ELSTAT) regarding the spending habits of Greek households. The study (pdf), released on November 29, is based on 2012 figures for spending and 2011 figures for income.
The report certainly makes for sobering reading, especially given that data from 2013 is expected to show a further worsening of the situation, despite government assurances regarding lights and tunnels.
Furthermore the study only examines households, meaning that groups without fixed addresses such as the homeless, Roma groups, illegal immigrants and the institutionalised are not represented in the study.
According to ELSTAT, the poverty threshold is defined as a yearly income of 5,708 euros or less for a single adult and 11,986 euros for a family of four with both children under the age of 14. On average, individual Greeks have a disposable income of 10,676 euros whereas for households the figure is 17,977 euros.
Perhaps unsurprisingly given the high levels of unemployment, drops in wages and biting tax increases across the board, family spending is down in most sectors. Hardest hit are family budgets for clothes and shoes for which average spending between 2011 and 2012 dropped by 15.3%, a reduction that is also reflected in figures reported by wholesalers.
Families are also drastically reducing their budgets for entertainment with spending in restaurants, cafes, cinemas also down approximately 15% over the same period. Further reductions were seen in expenditures on transport (12.6%) education (10%) and healthcare (8.6%) in the same period, continuing the downward trend that appears only to be accelerating.
Families also spent 7.5% less on average to cover their monthly needs for food with the greatest reductions seen in spending on items like meat, fish, soft drinks and juices with a greater reliance being placed on cheaper foods like bread and pasta.
This corresponds to an increase in the levels of food insecurity seen by other research teams with increasing numbers of children showing signs of poor nutrition due to a lack of regular access to good quality food. The number of families also making use of food aid programs has also increased dramatically in recent years.