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Households’ interest in non-deposit savings increased only slightly last year, but overall savings growth was faster.
“Statistics show that in the Baltic States the population accumulates in current accounts and deposits, and the habit of households to accumulate outside deposits – accumulative life insurance, pension tier 3, investment funds or shares – is not developed at the same time. cultural events were probably not originally planned as long-term savings, have stimulated interest in more free investment opportunities. However, according to statistics, unfortunately in most cases the interest has not been realized in real investment activities, “says CBL Asset Management Kārlis Purgailis.
In Latvia, life insurance accounts for half of the total household investment, and other investment opportunities are used much less. In Lithuania and Estonia, on the other hand, the opposite is true – investments in shares, funds and debt securities dominate.
Compared to its neighbors in the Baltics, Latvians are the least likely to use the opportunity to earn money by investing their free money in funds and stocks, while Lithuanians are the most active. Assessing the investment structure of households, the activity of Latvians investing in funds is relatively low – about 260 million euros, while in Lithuania it is almost three times higher – about 720 million euros, in Estonia – about 450 million euros, “Eurostat“statistics as of the end of the 3rd quarter of last year. In turn, investment in shares in Lithuania and Estonia several times exceeds the activity of the Latvian population – about 700 million in Lithuania, 620 million in Estonia and about 210 million in Latvia, respectively.
Household investment in the Baltics accounts for a small share of total financial assets, and in all three Baltic States households invest less than in other European Union (EU) countries, even taking into account the current stage of economic development in the Baltic States. Excluding funded pension levels, in Latvia and Lithuania household investment in total financial assets is around 13%, in Estonia around 16%, while in Sweden, for example, over 60%, in Germany around 45% and in Poland around 19%, according to Eurostat statistics.
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