EU Household Savings Rates Fall Back Towards Pre-Pandemic Levels After COVID Spike
-
In 2022, EU households saved about 12.7% of their disposable income on average, although less than in 2021. Germany had the highest saving rate at 19.9%, while Greece had the lowest at -4%.
-
Household saving rates do not show a clear divide between different regions of Europe - only the Baltic states were below 5%.
-
Saving rates increased dramatically during COVID-19 in 2020 and 2021 due to restrictions on spending and precautionary saving motives. Rates are now falling back towards pre-pandemic levels.
-
Richer countries with higher disposable incomes, like Germany and Luxembourg, tend to have the highest household saving rates and amounts saved per capita.
-
Differences in saving rates across Europe can be partly explained by income levels, age demographics, strength of social safety nets, inflation, and economic uncertainty.