Despite the spectacular recovery of the Greek economy, fiscal stability, and continuous upgrades from the markets, more and more Greeks are finding that their daily lives are becoming more difficult, with rising costs eating into their incomes and turning traditional summer vacations into a luxury, Bloomberg notes in a report.
As the news agency reports, Greece has been one of the most striking examples of economic recovery in Europe in recent years. Growth rates exceed those of many European partners, the national budget is running a surplus, and the country has left behind the image of the debt crisis that marked it during the previous decade.
However, behind the positive macroeconomic indicators lies a different reality for Greek households. According to the report, the economic recovery has not translated into a corresponding improvement in living standards, as rising costs continue to put a crushing strain on family budgets.
This is particularly evident in spending on housing, food, and energy. Although wages have risen in recent years, price increases have been even greater. Between 2019 and 2024, wages rose by about 12%, while consumer prices increased by more than 16%, significantly eroding citizens’ purchasing power.
Greece continues to rank among the lowest performers in the European Union in terms of per capita GDP and purchasing power. The average annual salary remains close to 18,000 euros, less than half the EU average, while a significant portion of the population faces the risk of poverty or social exclusion.
Housing is a particular problem. Households spend, on average, more than one-third of their disposable income on housing, a percentage that far exceeds the European average. The limited construction activity that followed the 2010 crisis created significant housing shortages, especially in major urban centers and high-demand areas.
At the same time, the explosive growth of tourism—which accounts for approximately 20% of Greece’s GDP—has contributed to a further increase in rents and the prices of goods and services, particularly on the islands. As a result, destinations that were once an obvious choice for Greek families are becoming increasingly unaffordable.
The government has implemented tax relief and measures to curb energy and food costs, and recently launched a new digital price-comparison platform for thousands of products. Nevertheless, polls show that the majority of citizens do not feel any substantial improvement in their economic situation.
The big challenge for the Greek economy is no longer achieving high growth rates, but ensuring that the benefits of this growth are felt in citizens’ daily lives. Because as long as economic indicators improve without a corresponding increase in disposable income, the feeling that the economic recovery is more about numbers than people will only grow stronger, the article concludes.