Savings on the rise in the eurozone

Over the past decade, despite the euro crisis and the Covid-19 outbreak, household financial assets have increased in all seven major eurozone countries that Allianz Trade examines in this report.  Households in Finland and Germany have even seen fairly significant average annual growth rates of over +5 percent. At the lower end of the scale is Portugal, where average asset growth was well below the +3% limit, while Austria (+3.1%), Spain (+3.1%), and Belgium (+3.3%) managed to be just above this limit.

Looking ahead, Allianz Trade economists believe that savers will have to adapt to a world of rising inflation - but the old rules still apply. Rising inflation has already drastically reduced returns in 2021, with the average total return falling by more than -60% in real terms. Rates of return can reinforce inequality. In most countries, there is a significant spread between the lowest and highest income groups in terms of rates of return.

(WBJ)