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Household Finance and Well-Being in Greece and Cyprus

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  • Georgios A. Panos

Abstract

I examine the overlooked topic of household finance in Greece and Cyprus using 2021 World Bank Global Findex data. Greek and Cypriot households rank 2nd and 1st in financial stress among 28 EEA/EFTA countries, with key concerns including old-age security and medical expenses. In terms of financial resilience, Greece ranks 22nd and Cyprus 25th for 30-day emergency fund access (70.3% and 65.3% of households, respectively), while for 7-day access, Greece ranks 27th and Cyprus 28th (47.9% and 47.3%). Households rely primarily on family support, savings, and work income, with low engagement in formal financial institutions. Only 45% of households saved in 2021, and just 26.5% in Greece and 28.1% in Cyprus did so through banks or financial institutions. These findings underscore persistent financial vulnerabilities, particularly in short-term resilience, and highlight the need for policies promoting formal savings and strengthening financial resilience mechanisms.

Suggested Citation

  • Georgios A. Panos, 2025. "Household Finance and Well-Being in Greece and Cyprus," Working Papers 2025_05, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2025_05
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    References listed on IDEAS

    as
    1. Asli Demirgüç-Kunt & Leora Klapper & Dorothe Singer & Saniya Ansar & Jake Hess, 2020. "The Global Findex Database 2017: Measuring Financial Inclusion and Opportunities to Expand Access to and Use of Financial Services," The World Bank Economic Review, World Bank, vol. 34(Supplemen), pages 2-8.
    2. Leora Klapper & Annamaria Lusardi, 2020. "Financial literacy and financial resilience: Evidence from around the world," Financial Management, Financial Management Association International, vol. 49(3), pages 589-614, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Household finance; Financial stress; Financial resilience; Saving; Greece; Cyprus.;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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