Greece’s Tax Revenues Grows - So Does Inequality

10:23 17/4/2025 - Πηγή: Dikaiologitika

Questions about who truly benefits from the country’s economic progress.

Greece is experiencing a troubling contradiction. On paper, its economy appears to be outperforming expectations—tax revenues in the first quarter of 2025 exceeded government targets by €600 million, a figure the finance ministry hails as a sign of strong fiscal management. But beneath this optimistic headline lies

a stark and growing social crisis, one that raises uncomfortable questions about who truly benefits from the country’s economic progress.

New data from the Hellenic Statistical Authority paints a grim picture of everyday life for many Greeks. More than one in four people - 26.9% of the population, or roughly 2.74 million individuals - are now at risk of poverty or social exclusion, a rise from the previous year. While these numbers may seem abstract, their real-world consequences are harsh and deeply human: families unable to afford heating, children with limited access to food, elderly people isolated and uncared for.

Particularly vulnerable are single-parent households, where the poverty rate has reached a staggering 43.7%. Women over 65 living alone face a similarly bleak reality, with 38.4% at risk of poverty. Even among those in work, poverty is no longer the exception - 10.5% of employed adults between 18 and 64 are considered poor, with part-time workers experiencing double the poverty rate of those in full-time roles.

Despite these challenges, Greece’s welfare safety nets continue to play a critical role. Without pensions and social benefits, nearly 45% of the population would fall below the poverty line. These transfers reduce the poverty rate to 19.6%, underscoring how vital they are to social stability.

Yet income inequality remains largely unchanged. The Gini index sits at 31.8%, while the income of the wealthiest 20% is still over five times that of the poorest. For the under-65 population, inequality is worsening, suggesting that working-age Greeks are bearing the brunt of the economic strain.

Perhaps most concerning is the extent of deprivation among children. Over 40% live in overcrowded housing, and for those already classified as poor, that figure jumps to nearly 57%.

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