On the verge of economic crunch stands a large part of Greek households. This is the conclusion coming from the annual IME GSEVEE survey carried out in collaboration with MARC SA.
According to the survey:
1) 40.2 % of the households, i.e. 1.4 million households have at least one unemployed person in their family. Out of this figure, only a 9.8 % receives an unemployment benefit (less than 200,000). More than 1 million citizens have no shelter towards the risk of unemployment.
2) 44.3 % of the population has financial obligations towards the banks. 1 in 10 households had to liquidate private property to tackle crisis. The recent legislation on property taxation, attachment of deposits, and partial removal of auctions is expected to create suffocating conditions for households.
3) 1 in 3 households is on the edge of delaying payments towards the public sector, funds, public utilities, banks, loans, etc. because of inability (34.8 % of households is late in debts in order to cope with the situation, while 41.7 % said that it doesn’t have an adequate income to meet the obligations.
4) The deterioration in the economic situation of the households keeps on, although now the phenomenon shows a slow-down. A large part of the population does not meet tax and loan obligations, purchases goods of lower quality to meet its obligations and fears that at some time it will be in danger of losing its house.
5) 94.6 % of the households has been subject to decreases in income during the period of the crisis (2010-2013). The vast majority of households belonging to the income group € 10,000-25,000 (96-97%) shows decreases in income. Compared to the year before (2012), 82.4 % of the population reports having been subject to decreases in 2013, a fact that shows that the downward trend in income keeps up.
6) The average decrease in income according to IME GSEVEE estimation reaches 40 % (39.47 %). Attica is the region with the largest decrease (41.06%).
7) Income coming from pensions is the main, and perhaps the only, support for households (48.6 %). Income from employment, self-employment, and entrepreneurial activity has given ground with regard to its contribution to the household economy (35.9 % of households counts on wages, 10.3 % on business profits).
8) A temper of pessimism still pervades the Greek households. 41.7 % considers that it will not be able to meet the financial obligations for the next year. Households with at least one unemployed (51 %) state an increased inability.
9) The market seems still frozen and asleep, since 75.5 % of the households (from a 70 % in the respective income survey last year) waits for the sales period in order to purchase basic goods.
10) The cuts in consumption due to the shrinkage of income are shown dramatic - 63.7 % of households has cut back foodstuff expenditure, while 90.3 % limited expenditure for clothing – footwear, and about 90 % has limited going out to restaurants, taverns, bars, cinema . More than 75 % of households has cut back expenditure for heating and transportation, which has to do with the maintenance of high and ineffective tax on heating oil consumption.
11) The life deterioration trend keeps on, since 36.5 % of the population states that is purchases lower quality products. The problem is more acute among large families (among families with > 5 persons it rises to 44.7 %) and low income classes.
12) The survey confirms the high figure of private property ownership by Greek households. 86.7 % of the population possesses a private property. 28.1 % of the households residing in a privately-owned house has a mortgage. This means that about 1 million households have loan burdens on the property they reside in.
13) 1 in 3 households fears that it will lose its house due to both accumulated obligations and additional burdens (loan, fiscal and other). This insecurity creates a vicious cycle of disinvestment and collapse of private property value.
14) A positive fact out of the survey is the confidence that households still show in the public health system, since 55.8 % would show more confidence to a public hospital for the treatment of a severe problem, compared to 34.2 % that would prefer a private one. Health policies exercised shall take account of this fact, as it is very likely that the users of public health services change preferences if the situation in public hospitals in administrative and political terms is not settled.
This survey is part of the regular annual surveys carried out by IME GSEVEE (in collaboration with MARC SA). It was carried out on a representative sample of 1201 households throughout the Greek territory during December 2013. The aim is to record the effects of economic crisis on income, household expenditure, and demand, as well as to take stock off the attitude of households towards the quality of living, tax and other financial obligations.
IME GSEVEE Surveys 
