Austrians saved an additional 12 billion euros in 2020 – Coronavirus Vienna

The crown pandemic has confused the saving behavior of Austrians. This year they put almost 12 billion euros more on the high edge than the previous year, although revenue is down by around 5 billion euros. An estimate by the National Bank for the second quarter of 2020 showed that around half of this additional money saved was “mandatory savings”, which those affected would have liked to spend, but could not do so due to the pandemic.

In addition, there are amounts that are set aside as “preventive savings” to be prepared for the after effects of the crisis. The chief economist of the National Bank, Doris Ritzberger-Grünwald, expects both mandatory savings and preventive savings to decrease. According to estimates by the National Bank, the savings rate will fall again this year from the unusually high 13.7 percent to the usual 8 percent.

As much as the economy is running out of money this year, that gives hope for a strong revival in consumption in the coming years. Because it is likely that some of this money will be “saved”, that is, spent, with the relaxation of restrictions and the return of confidence. Therefore, the National Bank also assumes that consumer spending will increase by 3.9 percent in 2021, although real income will stagnate.

The expectation is reinforced by a household survey conducted by the EU Commission, in which respondents said they are planning major purchases in the coming months. Finance Minister Gernot Blümel (ÖVP) also spoke in a substantive discussion that there is a good chance that consumption will increase through the release of saved funds. Above all, you need a better frame of mind in the economy. “The best incentive is optimism,” the minister told reporters.