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The growth of household deposits that has been observed for two years has not only slowed down, but in recent months they have also started to contract in nominal terms. Securing consumer spending, with annual inflation above 20% in July, also reduced the total balance of domestic deposits. While the annual growth rate of the deposit balance is only 7%, the real decrease in savings is becoming faster and faster, for example in July the real decrease in deposits was at least 2% during the month, but compared to the corresponding period of the previous year was more than 10%.
The decline in the population’s real incomes, with wage growth lagging behind inflation, prevents large numbers of households from building precautionary savings, although several factors (e.g., record bills forecast for the winter period and the impact of expected recession) could encourage them to do so. Thus, the annual growth rate slowed more for household deposits, but fluctuated without a visible contraction trend for corporate deposits. In July, the annual growth rate of domestic household deposits was 7.2%, corporate deposits of 6.9% (including non-financial corporate deposits of 10.9%).
In nominal terms, the increase in the balance of deposits in the last five months – from March to July – was 2.8% (deposits from non-financial corporations – 5.7%, household deposits – 1.3%, inclusive the balance of term deposits down by 5.5%).
This demonstrates the need to use the savings made for a non-white day, at least in part of the company. The expected recession in the fall and winter will reduce the general level of income, so the deposit balance will decrease.
