Greece’s consumer confidence continues to deteriorate, reaching new lows in July as households grow increasingly pessimistic about their financial future. According to the latest Economic Sentiment Survey by the Foundation for Economic and Industrial Research (IOBE), the consumer confidence index dropped slightly to -47.6 points from -46.9 in June. This positions Greece as the most pessimistic country in the European Union by a wide margin, far below the EU average of -14.5 and the Eurozone average of -14.7. The next most pessimistic countries, Estonia and Hungary, scored significantly higher at -38.9 and -29.1 respectively.
This widespread gloom is not limited to one aspect of life but reflects a broad-based erosion of economic sentiment among Greek households. Sixty-four percent of respondents believe their financial situation has worsened over the past year, while only 2% report any improvement. The index tracking household financial conditions slipped further to -49.3 points. Expectations for the future are equally bleak, with 59% of those surveyed anticipating a further decline in their household finances over the next twelve months, pushing the forward-looking index down to -45.2 from -42.8.
Worries about the overall economy are even more pronounced. Again, 64% of consumers foresee a worsening of the country’s economic situation in the coming year, while only 19% expect it to remain stable. The index measuring economic expectations fell to -46.9 points, significantly below the EU and Eurozone averages of -28.6 and -29.2, respectively.
Daily financial hardship is a persistent reality for many Greeks. Nearly six in ten people say they are merely getting by, and around 10% of households are relying on their savings to cover essential needs. There has been a small improvement in the number of people reporting household debt, which dropped to 8% from 10% in June. Yet the overall mood remains one of uncertainty: more than half of respondents (58.5%) said they are unable to predict how their financial situation will evolve, reflecting deep-rooted anxiety and instability.
Concerns over inflation remain high. The index measuring expectations for future price increases rose to +36.4 points, with 65% of respondents anticipating that inflation will persist or accelerate. Unemployment also remains a key worry. Thirty-six percent of households expect joblessness to rise, which pushed the unemployment expectations index up to +14.4 from +11.7 the previous month.
Against this backdrop, long-term financial commitments are virtually off the table. The intention to buy or build a home has all but disappeared, with the relevant index plummeting to -94.8 points. Only 1.7% of households expressed any interest in such investments. On a slightly more positive note, there was a modest increase in the intention to spend on home renovations or improvements. That index rose to -74.6 points, with 11.2% of respondents saying they might undertake such projects.
