Plunging Greek Wages Crater Q2 Disposable Income By 9.3%, Government Borrowing Rises To Record
Can someone please explain this whole “Grecovery” concept to use because neither we, nor apparently the people of Greece which are not only unemployed and broke, but have negative savings, and collapsing wages, social benefits and disposable income, seem able to understand it.
Here is the latest absolutely disastrous news from Elstat, reporting on Q2 Greek Non-financial sector accounts
During the second quarter of 2013, disposable income of the households and non-profit institutions serving households (NPISH) sector (S.1M) decreased by 9.3% in comparison with the same quarter of the previous year, from 33.2 billion euro to 30.1 billion euro. This was mainly on account of a decrease of 13.9% in the compensation of employees and a decrease of 12.4% in social benefits received by households.
This was the biggest drop in household disposable income since Q3 2012. Is this part of the Grecovery?
Next, the savings rate of the households and NPISH sector, defined as gross savings divided by gross disposable income, was -8.7% in the second quarter of 2013, compared with -6.7% in the second quarter of 2012.
So, households are broke, unemployed, and have negative savings. But at least the stock market is up. Is this, too, part of the Grecovery?
Finally, remember that myth about the suddenly accountable and responsible Greek government, which has a primary surplus, and is living within its means? Then please explain the following:
Net borrowing of general government (S.13) during the second quarter of 2013 amounted to 14.0 billion euro, compared with 3.8 billion euro in the second quarter of 2012. The increase in the General Government deficit in the second quarter of 2013 is due to capital transfers in the context of the program of state aid to specific banks. Net borrowing of general government excluding the impact of the support to financial institutions in the second quarter 2012 amounted to 2.6 billion euro.
This was the biggest quarterly government borrowqing in well… ever. Is this the final component of the Grecovery?
And some other independent data poinst:
- Greek 2Q Govt Deficit Widens to 16.6% of GDP From 11.0% in 1Q – obviously, this spells Grecovery
- Greek Debt Swells to 169.1% of GDP in 2Q, Nearing Pre-PSI Levels – this definitely must be the Grecovery, right?
The good news for all the broke, unemployment, incomeless Greeks: you still have your precious Euro.