With a slight decrease compared to previous years, the traditionally declining household deposits in January closed. This is at a time when unemployment has risen, based on the relevant research of state employment agency OAED.
According to data released by the Bank of Greece, their balances amounted to 134.72 billion euros, down by only 425 million euros on a monthly basis.
In January 2020, before the outbreak of the pandemic, they had fallen by 880 million euros.
According to banking sources, an important role for this development was played by the reduction of consumption in the first month of 2022, which slowed down the decline of the relevant figures.
As the same circles explain, “retail traded in early 2022 at a lockdown rate, although there were virtually no restrictions on its operation.”
In particular, they argue that “consumers have reduced their spending due to rising energy costs, measures in food service and entertainment, but also the significant impact on their psychology due to the Omicron mutation, and the increase in cases.”
Turnover decline
It is characteristic, as they say, that “several sectors of the retail trade recorded a decrease in turnover compared to January 2021, when restrictions on economic activity were much more severe. “Even the supermarket sector has been declining at an annual rate of close to 10% last month.”
It is no coincidence that the deposits of non-financial corporations fell by 2.37 billion euros compared to 1.49 billion euros in the last January before the pandemic.
In part, the slowdown in the decline in individuals’ savings is due in part to mortgage disbursements made in January, after a seven-year record in new contracts signed at the end of 2021.
Turn to investment
On the other hand, the decline in time deposits balances continues at an accelerating pace.
Last month, they fell by 852 million euros. In 2021, respectively, the decline was of the order of 660 million euros and in 2020 420 million euros.
Part of this money was directed to alternative investments, as interest rates on time accounts are now virtually at 0%.
Indicative of this trend is the fact that the net inflows in the mutual fund market exceeded the period under review by EUR 102 million.
Latest News
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bank of Greece Governor Says EU will Retaliate to Trump’s Tarrifs
The Bank of Greece Governor defended the independence of central banks amid criticism from U.S. President-elect Donald Trump, who had publicly commented on Federal Reserve Chair Jerome Powel
September in Greece Winning Tourists Over from US, Germany
Tourists continue to visit Greece off-season into Sept. with the number of inbound travelers up by 6.6% and a 7.9% rise in travel receipts.
Bitcoin Surges Toward $100K Amid Pro-Crypto Optimism in US
According to Reuters, the cryptocurrency surged to an all-time high, briefly exceeding $96,898 during Asian trading hours.
Greek Driver Violations at a Touch of a Button
Traffic offences recorded in the last five years by Greece’s “Driver Behavior Control System” are now available on Gov.gr Wallet
Milan Tops List of Most Expensive Streets, Athens’ Ermou Holds Steady at 15th Place
In Athens, following Ermou Street is the southern suburb of Glyfada and Tsimiski Street in Thessaloniki.
New Gov.gr Service Enables Secure Reporting of Minor-Related Delinquency
It should also be noted that via the recently introduced initiative ‘Safe Youth’ application citizens have access to specially tailored informative material regarding the safety of children and adolescents
Thousands Strike in Athens Over Soaring Living Costs and Stagnant Wages
Inflation, particularly in food prices, has been crushing Greek households
Greece Overhauls Property Valuation System
Greece plans to launch a revamped property value registry in 2025 and overhaul the way objective values are calculated to enhance tax revenue and improve transparency.
Greece’s New Tax Bill Foresees Tax Relief Beyond Big Business
Tax relief measures in Greece are proposed for freelancers, property owners and farmers, along with 'big business'