New data from Greece’s national statistics agency, ELSTAT, highlights mounting pressure on household budgets: in the first quarter of 2026, household consumption grew faster than disposable income—pushing the national savings rate deeper into negative territory.
Consumption Surges Beyond Income
According to ELSTAT’s preliminary quarterly non-financial accounts, disposable income for households and non-profit institutions serving households rose by 3.2% year-on-year—from €37.92 billion in Q1 2025 to €39.13 billion in Q1 2026. Yet this increase fell short of the pace of spending growth. Final household consumption jumped 4.7%, climbing from €38.6 billion to €40.4 billion.
In simple terms, Greek households collectively spent roughly €1.3 billion more than their available income during the quarter. This gap is reflected starkly in the savings rate, which dropped to −3.3%—down from −1.8% a year earlier.
Income Rose—but So Did Spending
Breaking it down further: gross primary household income rose 3.8% to €40.34 billion. Meanwhile, current income and wealth taxes increased by 3.3% to €3.73 billion, and social contributions and benefits rose by 3.6%.
The picture isn’t one of falling incomes—in fact, they rose. The issue lies in even stronger consumption growth, widening the shortfall between income and outlays and deepening the negative savings trend.
Business Investment Remains Strong
At the same time, business investment held firm. Gross fixed capital formation by non-financial corporations reached €4.88 billion. As a share of gross value added, it rose to 26.2%—up from 25.4% in Q1 2025.
Higher External Financing Needs
ELSTAT’s data also point to an increased net external financing requirement for the Greek economy. While the goods and services balance improved—its deficit narrowed from €7.61 billion to €6.73 billion—this was partly offset by a sharp contraction in the primary income and transfers surplus, which fell from €3.30 billion to €1.31 billion.
As a result, the overall economy recorded net borrowing from abroad of €5.42 billion in Q1 2026—up from €4.32 billion a year earlier.
The General Government also increased its external borrowing, recording net inflows of €1.29 billion, compared with €0.79 billion in Q1 2025.