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Swiss households save an average of CHF 2,000 more during the Corona crisis than in normal times. Revenue has generally declined, but at the same time, it’s spending a lot less because of closings, as a study by Credit Suisse shows.
The savings rate – the share of income a household reserves after all expenses have been spent – has nearly doubled during the Corona crisis, the report said Monday.
13 percent of the gross income in the piggy bank
Before the crisis, the Swiss would have put about 13 percent of their gross income into the piggy bank per household, without the mandatory savings, such as the old-age provision. According to the study, this rate should now have increased to 22 percent.
This is due to the fact that the options for spending money are very limited. According to estimates, around a third of consumer spending is generally spent on goods and services that are unavailable or difficult to obtain due to measures taken to contain the virus.
More online shopping
According to the study authors, online trading also does not offset these losses. At 15 percent, the online market share across the entire retail trade – that is, the food and non-food sectors – has increased, but remains relatively low.
Credit Suisse experts therefore assume that overall consumer demand during the crisis will be around 20 percent lower than before. Calculated over two months, this means a saving of CHF 12 billion.
Revenue is also falling
But while the crisis appears in terms of savings, it is also evident in terms of income: with a two-month blockade, according to the bank’s calculations, the crisis in Germany leads to a total loss of income of around CHF 15.3 billion . This arises, for example, from the reduction of wages due to short-term work, unemployment or other labor restrictions.
Some of these losses are cushioned by government payments, such as short-term job assignments and earnings or daily allowances. Credit Suisse expects state cash payments of around 11.6 billion Swiss francs over a two-month period after the restrictions.
The state does not fully compensate for losses
This means that a loss of revenue of $ 15.3 billion is offset by a transfer sum of $ 11.6 billion, which means that the state does not fully offset the losses. On average, a household’s income is likely to be nearly 5 percent lower than it was before the crisis, the report continues.
By subtracting household income losses from the 12 billion savings, a total of more than 8 billion is now left to be reserved as savings. A two-month lockout saves a home more than CHF 2,000 more than would be expected in times without a crown crisis, according to the study.
After Corona, it will probably consume more again
However, the savings will not remain entirely in the savings brochure. Experts assume that, after the initial precaution, households will again spend some of the money from the crisis on consumer goods in the coming months.
According to estimates, around 5.5 trillion Swiss francs out of the 8 trillion will flow back to goods and services in the consumer sector.
However, less recovery consumption is expected the longer normality is delayed. And to achieve this, not only the pace of relaxation is decisive, but also the confidence of consumers, which is decisive for the desire to buy. (SDA / vnf)
