[ad_1]
It is true that economists say that the pandemic has taught people to save and accumulate a financial pillow. Compatriots can already boast of record deposits in banks: it turns out that Lithuanians have accumulated more than 3 billion euros a year.
Marius, 20, returned to Lithuania from abroad for the summer season and immediately rushed to look for work, because during the pandemic all efforts were unsuccessful. The young man admits that the quarantine hit him hard: the doors were closed by cafes and restaurants, so the guy had no high hopes of finding work. Still, Marius managed to recover financially after the pandemic.
“Actually, yes, I would like to say that I was as successful as I could have hoped for when I was young, I think that elsewhere I could not earn as much,” says student Marius.
The boy is glad that there were days when customers who came to the restaurant did not forgive generous tips.
“I remember when the rally was underway, the load was high, the restaurant was fine, I could say I won up to 100 euros,” he says.
And recent research reveals how the pandemic has affected young people’s finances. A SEB Bank survey shows that the income of a third of the Lithuanian population between 18 and 25 years of age decreased and more than a quarter had to spend their savings. True, 13 percent. study participants say income increased during the pandemic.
And due to the enormous uncertainty during the pandemic, young people began to save and accumulate money.
“When we interview young people, what we see in the good consequences of the pandemic is that about 40 percent of young people save both for the future and to accumulate financial resources,” says Eglė Dovbyšienė, director of retail banking in the region Oriental.
It is true that the economic difficulties of young people are also reflected in unemployment statistics. According to the Employment Service, the number of young people aged 16 to 24 seeking work increased by 10% compared to August of the previous year. Swedbank analysts estimate that deposits from 18-25 year olds do not exceed 1,000 euros.
“Their average deposit amount according to Swedbank data shows that it is up to 1000 euros. Meanwhile, people in the group between 45 and 64 years old have 4 times the amount of their deposits and reach about 4,000 euros”, says Greta Ilekytė, Swedbank economist.
And the amount of the population that saves regularly in the country has increased more than 60 percent during the year. This is also demonstrated by the growing deposits of compatriots in banks. According to the Bank of Lithuania, Lithuanians saved more than € 3 billion a year. In June, people had accumulated more than 19,000 million euros in banks, a fifth more than in the same period last year.
“Residents in times of crisis like these, with extremely high uncertainty, tend to tighten their belts, save money and see what happens next. Of course, another reason why it was difficult to spend money, because we saw that a significant part of the service sector was restricted, ”says Paulius Morkūnas, an economist at the Bank of Lithuania.
And the growth in wages also contributed to such a rapid rise in savings. Both last year and this year, wages grew in double digits.
“In the first half of this year, the average salary increased by about 12 percent. It is that with such rapid income growth, Lithuanians always save a part of their income and as a result increase deposits. Over the last few decades, there have been few cases where savings and deposits have declined, ”says Nerijus Mačiulis, chief economist at Swedbank.
Still, with the end of summer and the pandemic showing its teeth again, economists predict that deposit growth this fall will not be as high as it was last year.
“Again, we will have more opportunities to spend than, for example, a year ago, in autumn and winter, when the second quarantine was announced. This deposit curve is likely to grow and, if it decreases, it will be weak,” explains P. Morkūnas.
Antrina and N. Mačiulis: “Now that deposit growth is very moderate and there is no panic, there is no euphoria, there is no desire to suddenly save, no desire to suddenly spend the money saved. Those deposits are likely to grow so moderately, gradually. “
In terms of deposit growth, the Baltic region is among the top five in the European Union, where household deposits grew the fastest. According to the Bank of Lithuania, the annual growth of Lithuanian deposits is the fastest in the entire European Union.
[ad_2]
