Greek barista Kyriakos Giannichronis has seen the headlines about his nation’s newly booming financial system after years of recession — however he doesn’t really feel the wealth.
The Athens resident solely has about 150 euros ($170) to spare on the finish of the month, and that’s regardless of getting an excellent deal on hire and making a little bit greater than minimal wage.
Many Greeks face comparable challenges — which is why Prime Minister Kyriakos Mitsotakis is extensively anticipated to announce new advantages in a keynote speech this weekend.
“I’m accountable sufficient for what I make, however… the whole lot goes up and up. And the quantity we receives a commission is across the identical annually,” he mentioned.
“Issues seem like they’re getting higher, nevertheless it doesn’t seem to be it,” the 27-year-old informed AFP.
Residing requirements in Greece stay low regardless of the Mediterranean nation’s substantial rebound which has the financial system rising at two % — the next charge than in a lot of Europe.
The explanation for the 2 sides of the coin is that Greece has important floor to make up after a near-decade financial disaster and pandemic recession.
The financial system “is rising and all the fitting measures are enhancing, however ranging from a really low foundation,” economist Nikos Vettas informed AFP.
“Even when you’ve got a rise now, this enchancment will not be sufficient to catch up,” mentioned Vettas, who heads the Greek basis for financial and industrial analysis IOBE think-tank.
To additional complicate issues, housing and meals costs had gone up due to inflation, which solely now could be on its means down.
“The price of dwelling really neutralised a part of the rise within the wages that we had, and in consequence the actual incomes of many households are struggling,” Vettas mentioned.
Mitsotakis’ conservative authorities — which is dipping within the polls — has blamed the excessive value of dwelling on hovering vitality costs that adopted the conflict in Ukraine.
His New Democracy celebration is at the moment polling at round 22 %, a far cry from the 40.56 % it gained in nationwide elections final yr.
Mitsotakis is anticipated to announce a brand new spherical of advantages within the prime minister’s annual financial system speech in Thessaloniki this weekend.
‘Life is so costly’
Final yr, the nation of simply over 10 million individuals had the second lowest GDP per capita in buying energy throughout the European Union.
Solely Bulgaria fared worst, in keeping with EU knowledge company Eurostat.
It additionally discovered that common annual earnings in Greece was half the European common in 2023.
And the Greek minimal wage is 830 euros, some 900 euros beneath that of France.
“So how are you alleged to stay, if you must hire a home with 500 euros?” requested Athens hairdresser Christina Massiou.
“Life is so costly you can’t put aside cash for emergencies,” the 24-year-old added.
She and her buddy Alexandra Siouti, who works at a PR company, spoke from below a palm tree at a seaside close to Athens.
They’d gone to calm down and “escape from actuality”, Massiou mentioned.
“I’ve seen the older generations say that issues are getting higher. For them possibly,” Siouti, additionally 24, informed AFP.
“However youthful individuals don’t have many alternatives right here to begin their life and put money into their desires.”
No Switzerland or Sweden
Final month, the financial system ministry mentioned family web disposable earnings had risen in recent times, placing Greece in sixteenth place within the European Union.
The info confirmed the “important progress our nation has achieved within the final 5 years”, the ministry mentioned in an announcement.
However the ministry acknowledged that it was not trigger for celebration or a cause to “underestimate the actual difficulties that lots of our fellow residents face”.
“It’s apparent that Greece has not become Switzerland or Sweden,” it mentioned.
Vettas, the economist, famous that some sectors have fared higher than others.
“We have now witnessed within the final three or 4 years a pointy enhance within the salaries of professions the place they’ve some speciality, some experience,” he mentioned.
“Both on the higher finish or the decrease finish,” Vettas added, giving the examples of laptop scientists and development employees.
However for these employed in a sector like hospitality — a giant trade in Greece — “it’s not straightforward to see the way you’re going to enhance their place”.
Giannichronis, the barista, mentioned he was making an attempt to stay zen in regards to the financial scenario, regardless of having to consider cash on a regular basis.
“I’m not livid as a result of it wouldn’t do me any good. Issues are the best way they’re. We will’t change a lot,” he mentioned.
What he can management is tips on how to finances his personal bills and assist his buddies higher handle theirs, he added.
“But when I used to be offended about it too, then I’d begin to lose myself and go loopy on the streets shouting… and I don’t need that.”
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