Greece may stand out thanks to its strong economic growth, prudent fiscal policy and reforms, which may have put it back in the investment-grade club, and wages may have risen in recent years, but Deutsche Bank essentially shows why the average Greek is struggling to feel this improvement and is right to feel poor. The cost of living is above the international average, while wages are considerably lower.
In its report on the cost of living and living conditions in 69 cities worldwide that are of greatest importance to global financial markets, the German bank reaches some interesting findings. In the analysis of the many categories that make up the cost of living, from mortgage payments, electricity and water bills, and gasoline, to going out to a restaurant and the cinema, a gym membership, and enjoying a coffee or a beer, the city of Athens ranks well above average, while the average salary is low.
Athenians pay the 10th most expensive gasoline in the world, according to Deutsche Bank. Specifically, 1 liter of gasoline currently costs $2.09, having recorded a 23% increase in five years.
However, salaries in Greece (Athens) are very low in the ranking at 56th. Although there has been an increase of almost 30% compared to 2000, the monthly salary (after taxes) is $1,141, one place above the average salary in Turkey, which is $934, one place below the monthly salary in Bangalore, India ($1,261), and two places lower than the $1,340 that the average worker in Kuala Lumpur, Malaysia earns.
The cost of monthly rent for a three-room apartment in the center of the capital is competitive, with Athens taking 59th place ($1,180). However, buying a house is not affordable in Greece.
A mortgage loan installment today constitutes 78% of income (purchase of a 90-square meter apartment in the center with a 20% down payment, duration of 20 years), with Athens occupying 31st place internationally.
Athens is also quite expensive in terms of electricity, heating and water bills. It is ranked 25th internationally, with this cost for households having recorded an increase of over 33% in five years.
Athens is not cheap when it comes to clothing, going out and entertainment. Buying a bottle of wine, a pair of jeans, a dress, coffee for two, a meal for two in a mid-range restaurant, two cinema tickets and two taxi fares costs a total of $256 in Athens, a 30% increase from 2000.