The release by ELSTAT on Friday of non-financial institutional sector accounts showing a significant new increase in household disposable income in 2025 showed that it rose to its highest level in 17 years. At the same time, private consumption also moved upwards, following the path of incomes.
Specifically, disposable income rose by 5.3% year-on-year to €167 billion, the highest increase since 2009. It should be noted that 2024 was preceded by a 4.5% rise, which demonstrates the continuation of the upward trend. In the fourth quarter of 2025, growth accelerated further, reaching 9.8%.
According to officials of the economic staff, the strengthening of incomes is mainly linked to the increase in earnings from work and business activity, which increased by 2.51 billion euros (+5.9%). At the same time, social contributions moved up by 480 million euros (+4.6%), while a decrease in taxes was recorded by 319 million euros (-5.3%), contributing to the improvement of the final amount available to households.
In the same direction, according to the same officials, a decisive role was played by the deceleration of unemployment, which is now at around 8% and moving towards historic lows, leading to an increase in employment and a broadening of the wage base.
For their part, market participants point out that the increase in the minimum wage in recent years is gradually being reflected in overall labour incomes, particularly affecting the lower income strata and boosting disposable income.
Based also on ELSTAT data, in the same period private consumption increased by 5.5% to 171.5 billion euros, reflecting the close relationship between income and consumer spending.
It should be noted that these figures refer to nominal growth in an environment of inflationary pressures, with inflation projected at around 2.5% in 2025. However, even after the impact of inflation, a strengthening in disposable income is being recorded, which is linked to the gradual improvement in the financial position of households, economic staff say.
