The disposable income of households and non-profit institutions serving households increased by 1.1% in the first quarter of this year, rising to €35.13 billion euros from €34.74 billion euros in the first quarter of 2023. At the same time, final consumption expenditure increased by 6.9% year-on-year, from €35.5 billion to €38 billion in the same quarter last year.

However, the savings rate, defined as gross savings to gross disposable income, was -8.1% in Q1 2024, compared to -2.2% in Q1 2023.

PRIVATE INVESTMENT
Also, according to the quarterly non-financial institutional sector accounts from ELSTAT, private investment (gross fixed capital formation) of non-financial companies amounted to €4 billion. The ratio of investment, defined as gross fixed capital investment to gross value added, was 22.9%, compared to 21.2% in Q1 2023.

In the first quarter of this year, a deficit of €6.93 billion was recorded in the external balance of goods and services, compared to a deficit of €6.46 billion recorded in the first quarter of 2023 (imports of goods and services decreased by €0.56 billion, while exports of goods and services decreased by €1.03 billion).

GENERAL GOVERNMENT SECTOR
The general government sector recorded a net borrowing of €2.6 billion, compared to the net borrowing of EUR 5 billion in Q1 2023. In addition, a surplus of €3.06 billion was recorded in the external balance of primary income, current, and capital transfers, compared to a surplus of €0.78 billion recorded in the corresponding quarter of 2023.

As a result of the above, the overall economy recorded a net borrowing of €3.87 billion, while in the corresponding quarter of last year, net borrowing amounted to €5.68 billion.