Confinements and restrictions as a result of the pandemic have had a direct effect on the pockets of households. The inability to leave normally, the limitations of opening hours and capacity of shops and bars, as well as the fear of coronavirus, have reduced private consumption and boosted savings capacity. Thus, & nbsp; household liquidity & nbsp; in the European Union increased by 6.6% & nbsp; in the fourth quarter of 2020 over the same period last year due to measures to curb the pandemic, with Spain as the second EU country that has saved the most during the pandemic, where there is a greater decline in household consumption, 11.2% less, according to the office of Community statistics, Eurostat.
In fact, in Spain, money reserves in deposits have risen to record levels above 920 billion euros, according to the latest data available at the Bank of Spain. In general, the savings in the economy of European households are explained “by a large decrease in individual household consumption expenditure in year-on-year terms,” said Eurostat, related to the measures taken to curb the pandemic. of the coronavirus.
The year-on-year increase in the savings rate in the EU as a whole is due to the fact that household spending was 7% lower in the community club compared to 2019, with Spain (11.2% ) being the second EU country to save the most during a pandemic, just behind Slovenia, which accounts for 15.4% in reducing consumption.
In all Member States for which data are available for the fourth quarter of 2020, household savings were higher than in the previous year. On the other hand, Denmark has been the only EU country in which household consumption increased by 0.2%.
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