To Corona is before the shopping tour. The Germans want to spend their savings.
This is shown by an analysis by DZ Bank of the financial assets of private households in Germany. It is expected to increase to more than eight trillion euros by the end of the year – an eight followed by twelve zeros!
Compared to the previous year, however, this is a comparatively small increase of only 2.3 percent. In 2021, the increase was still 8.4 percent.
► The reason: “Despite the Ukraine war and the high inflation, there are pent-up consumer needs due to the recent corona pandemic,” explains DZ Bank.
According to the analysis, private households usually react to growing uncertainty in times of crisis by putting more money on the back burner.
Special feature in the Corona period: During the pandemic, a “huge pent-up demand” had built up. According to DZ Bank, households would have saved a total of around 200 billion euros in 2020 and 2021 due to closed shops and restaurants, restricted cultural and leisure activities and not taking longer vacation trips.
The private savings rate reached a new record in 2020 at 16.1 percent of disposable income. In 2021 it remained extremely high at 15 percent.
Money for shopping, dining out and vacations
But: “The additional savings were often not invested at all, but simply remained in the checking account,” says the study.
And then it is spent! The money would be kept ready for purchases, shopping, going to restaurants, leisure time or holidays.
► The Ukraine war and the high inflation are now curbing the willingness to spend – but not significantly. DZ Bank estimates the savings rate this year at around ten percent, i.e. at the level of the long-term average.
However, this does not apply to all Germans. In low-income households, high heating costs, expensive fuel and increased food prices mean that less can be saved.
The federal government’s relief package, which was launched because of the high energy prices, can only partially compensate for the consequences of the high inflation.
It is expected that the wealth of Germans will increase again more strongly in the coming year. At 5.3 percent, “wealth accumulation should then progress faster again,” according to the study.
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