Greece: That Trend Continued in the First Quarter of 2026, When Income Was Up 3.2 Per Cent Year on Year

Greek households have seen both disposable income and wealth rise over the past two years, with Alpha Bank attributing the gains to stronger employment, firmer economic activity, tourism and the country's restored investment grade status. In its latest economic developments bulletin, the bank said household finances have improved on two fronts, although Greece still lags the eurozone badly on disposable income even as its wealth position looks relatively stronger. Gross disposable income for households in Greece has remained on an upward path over the past two years, rising at an average annual rate of close to 5 per cent.

That trend continued in the first quarter of 2026, when income was up 3.2 per cent year on year. The rise outpaced average annual inflation of 3 per cent over the same period, helping households recover part of the real income losses suffered in 2022 and 2023 during the sharp inflation surge. Saving, however, stayed negative at about -3 per cent of gross disposable income, as private consumption in nominal terms exceeded household income.

That suggests part of spending continues to be financed from other sources, including savings built up during the pandemic and bank borrowing. Consumer loans in the domestic banking system have also been rising sharply, with the latest available reading for June showing growth of 6.9 per cent over 12 months. Alpha Bank also said that as the value of household assets rises, so does the sense of financial security, which can encourage more spending through the wealth effect.

The bank attributed much of the income improvement to higher employment and stronger economic activity. Household income growth in 2024 and 2025 came mainly from wages and salaries, with a secondary contribution from operating surplus and mixed income among the self-employed and sole traders. Those two categories kept rising in the first quarter of 2026, by 4.3 per cent and 6 per cent respectively.

Property income also contributed positively in 2024 and 2025, though to a lesser extent, while direct taxes partly offset the increase in gross disposable income. On wealth, the value of household assets in Greece has been rising strongly since mid-2022 and accelerated further over the past two years. According to European Central Bank data, gross household wealth in Greece exceeded €1tn at current prices in Q4 2025, marking a cumulative rise of 19 per cent (€161bn) over 2024 and 2025. Among financial assets, mutual and investment funds stood out, more than doubling in value over the two-year period; financial business wealth and listed shares followed; bonds, life insurance and deposits came next.

Among non-financial assets, real estate rose by 16 per cent and non-financial business wealth by 13 per cent. The bank also highlighted a notable shift in recent years toward financial wealth: in Q4 2018 it accounted for only 26 per cent of total household wealth.