Research FHW GSEVEE: The expectations of households for 2022 are particularly negative

The support measures combined with the partial return to “normalcy” seem to have led to an improvement in the income structure of households, which was reinforced by the increase in employment, according to the main conclusions of the income survey of Greek households by FHW GSEVEE. 2021.

In particular, the households belonging to the lowest income category (with an annual income of up to € 10,000) decreased significantly by 7.5 points, from 25.1% in 2020 to 17.5% in 2021.

However, according to the survey, the income inequality between low- and middle-income households versus high-income households has widened.

Specifically, 31.6% of households with income up to € 25,000 stated that their income decreased in 2021, compared to only 6.9% who stated that it increased. On the other hand, 20% of households with an income over € 25,000 stated that their income increased in 2021, compared to 11.6% who stated that their income decreased. It is noted that based on the research only 2 out of 10 households live with an annual income of over € 25,000.

The adequacy of household income did not change in relation to both 2020 and 2019. A very large number of households live in long-term financial conditions, as the monthly income for more than 4 in 10 households is not sufficient for the whole month , but for 19 days (average).

Accuracy has boosted the number of households that have increased their spending on basic goods. 65.1% of households increased their spending on household bills (20% the corresponding percentage in 2020), 52.8% on food (26.2% in 2020), 51.9% on heating (12 , 9% in 2020) and 34.7% for health and medicines (26% in 2020). It is noted that increases in electricity prices are for 1 in 2 households the category that has the greatest negative impact on their income. Overall, total household expenditure increased in 1221 by 12% (average).

Despite the de-escalation of the percentage of households with overdue debts to the tax authorities and / or insurance funds (16.8%) recorded for 2021, about 3 in 10 households stated that they will not be able to meet these obligations in 2022, indicating how we move away from a sustainable private debt settlement that is not only the result of the pandemic, but also of the ten-year economic crisis.

This is the 10th survey of FHW GSEVEE conducted since 2011 in collaboration with the company MARC. The survey was conducted on a nationwide sample of 809 representatively selected households between 9-17 December 2021. It was conducted under conditions of pandemic, high inflation and before the occurrence of recent adverse geopolitical developments, which will undoubtedly have serious economic, social and political consequences. the extent of which can not yet be estimated. Regarding the expectations and / or estimates recorded for 2022, it is rather certain that the current developments have changed them for the worse.

Summary of the main findings of the research of FHW GSEVEE on the income and living expenses of households (2021), which was carried out in collaboration with the company MARC SA.

Household income structure

The number of households with an annual income of up to € 10,000 decreased from 25.1% in 2020 to 17.5% in 2021. On the other hand, the number of households with an annual income of € 10,001 to € 18,000 remained stable, while the number of households with an annual income increased. income:
18,001 € to 25,000 € from 15% in 2020 to 18% in 2021
€ 25,001 to € 30,000 from 9.4% in 2020 to 10.5% in 2021
over € 30,000 from 6.7% in 2020 to 8.6% in 2021

Sources of income

Salary and pension are the main source of income for the vast majority of Greek households. 43.1% stated that the main source of income was the salary, 43% of the households declared the pension as the main source of income and 8.5% stated that the main source of income was business activity.

33.4% of households have no other source of income. Another 24.5% source of income is the salary, 20.1% the pension, 11.6% the rents, 4.7% the income from business activity and 3.3% the unemployment benefit.

Unemployment – employment

Better 2021 survey data than 2020 households with at least one unemployed member. Specifically, more than 1 in 5 households (22.5%) has at least 1 member unemployed. This percentage, despite the improvement it presents in relation to 2020 (27.9%) remains, particularly high.

The percentage of households with at least one member who is in long-term unemployment was high and even higher compared to 2020. Specifically, more than 7 out of 10 households (73%) of those who stated that they have an unemployed member, are in a state of long-term unemployment, compared to 54.3% in 2020.

Change in income

More than 1 in 4 (27.4%) stated that their income decreased in 2021, compared to 9.8% who stated that it increased and 62.5% who stated that it remained stable. For households that reported a reduction in their income in 2021, the average reduction was 28.9%. On the other hand, 9.8% of the households that stated that their income increased, the average increase amounted to 16.8%.

Reduction of their income for 2021 declared more than 1 in 3 households with an annual income of up to € 10,000 (35.2%) and with an annual income of € 10,001 to € 18,000 (36.2%), as well as about 1 in 5 households with annual income from 18,001 to 25,000 € (18.6%). The balance in the above categories between households whose income increased and those that decreased was negative.

On the other hand, the percentages of households belonging to the highest income categories and stated that their income decreased in 2021 were significantly lower (11.6%), while at the same time the percentages of these households that reported an increase in their income were much higher. (20%) compared to other households, recording, in fact, a positive balance.

These figures show a widening trend of income inequality between low- and middle-income households versus high-income households.

Income adequacy – savings

More than 4 in 10 households (43.6%) stated that the monthly income is not enough for the whole month.

For these households the monthly income is sufficient on average for 19 days.

This finding remains stable from 2019, which shows that in the last three years, apparently due to the outbreak of the pandemic, a very large number of households have not experienced an improvement in their livelihood, remaining in a particularly precarious financial position.

In this unfavorable situation are 49.8% of large households (with 5 people and more), 49% of households with 4 people, 54.8% of households with at least one unemployed, 65% of households with income up to € 10,000 and 51.4% of households with income from € 10,001 to € 18,000.

11.5% of households stated that their income is not enough to cover even their basic needs, a finding related to the extreme poverty rate in our country, while it is slightly higher than the corresponding percentage of research 2020 (10.2%).

The percentage of households that are unable to save remains consistently overwhelming, as 8 out of 10 households (80.1%) stated that they are unable to save.

Obligations of households

16.8% of households stated that one of its members has overdue debts to the State (tax authorities, insurance funds), a percentage reduced compared to the corresponding survey of 2020 (23%).

Increased by 10 points compared to the 2020 survey, the percentage of households that state that they will not be able to meet their obligations to the State in 2022 is recorded. Specifically, more than 1 in 4 households (27.8%) stated that they will not be able to meet his tax and / or insurance obligations.

5.3% of households have overdue debts to banks for consumer, business loans and / or cards, while 5.2% of households stated that they will not be able to meet the aforementioned banking obligations in 2022. Both percentages are better than the corresponding 2020 survey.

21% of households have an active home loan. Of these households, 16.5% often repay the loan installments with some delay, while 6% have overdue debts of more than 3 months. The percentages are also the lowest that have been recorded in an income survey of FHW GSEVEE since it monitors this index, ie since 2014.

Consumer trends – quality of life

More than 5 in 10 households (50.9%) reduced their spending on outings (restaurants, cafes, cinemas, etc.). 45.1% of households spent less on travel, while 43.3% reduced spending on clothing and footwear

On the other hand, there is a surge in the percentage of households that have increased their spending to meet basic needs, apparently due to the accuracy of recent months. In particular, 65.1% of households increased their spending on household bills, 52.8% on food, 51.9% on heating and 34.7% on health and medicine.

Overall, total household expenditure increased in 2021 compared to 2020 by 12% (average).

More than 3 in 10 (31.2%) households are late in seeking appropriate treatment for a medical problem, 2 in 10 are late in paying for electricity and more than 1 in 10 (12.5%) are late in paying for heating bills.

Expectations for 2022

Household expectations for 2022 are particularly negative, mainly due to the effects of accuracy. Specifically, about 1 in 2 households (45.1%) estimates that in 2022 its financial situation will worsen, compared to only 13.6% who estimate that it will improve and 36.7% who estimate that it will remain the same.

The pessimism expressed by households about their future financial situation seems to be fueled mainly by accuracy, as the question of whether the increase in prices has affected the households of respondents to the extent that they are forced to reduce basic necessities by 45.3% answered a lot, 31.6% a little while 21.9% answered negatively.

Rises in electricity prices are for almost 1 in 2 households (49.8%) the category that has the most negative impact on their income, followed by increases in food (21.4%), gasoline (12.4%) ) and heating oil (9.3%).

42.7% of households consider the reduction of taxes and fees on fuel and energy and the 40.9% increase in salaries and pensions to be the most appropriate measure to deal with the negative effects of the price increase.

Regarding the government measures for dealing with accuracy, 60.9% of the households assessed them as insufficient, 14.9% as rather insufficient, while only 9.5% and 6.3% assessed the measures they had taken at the time of the survey as rather sufficient and sufficient respectively.

See the full survey in the right-hand column Related Files