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People in Germany saved “like crazy” in 2020 and are now richer than ever, according to calculations by leader De Zet Bank (DZ Bank), cited by DPA and BTA.
De Zet is the second largest bank in Germany.
According to preliminary data, last year the financial assets of private households increased by 393 billion euros to a record 7.1 trillion euros.
De Zet Bank economist Michael Stapel attributes this 5.9 percent annual growth in large part to the historically high savings rate.
Many people have saved their money for fear of reduced working hours or unemployment. The temporary lockdown in the retail sector has also hit the brake on consumption, notes the DPA.
De Zet Bank expects savings to reach a record 16 percent by 2020, with the Be Fau Air Bank Association (BVR) even forecasting around 17 percent in early December.
Estimates show that private households in Germany spent 16 or 17 euros for every 100 euros of disposable income during the year.
According to the Federal Statistical Office, the highest levels of savings in Germany so far were recorded in 1991 and 1992: 12.9 percent. In 2019, the indicator was 10.9 percent.
Although equity markets recovered relatively quickly from the collapse of the coronavirus in February and March, the rise in the value of stocks and mutual funds contributed only a small part to the rise in private financial assets.
“Ultimately, the growth of financial assets in 2020 is due almost entirely to extremely high savings as a result of the coronavirus crisis,” Stapel said.
Germany’s population is approximately 83 million people. The country has been under a quarantine regime since November: bars, restaurants, cultural and sports facilities have been closed. The first lockdown was in the spring, recalls TASS.
