Economic uncertainty is driving higher volumes of savings and investment in assets such as deposits
Fear and economic uncertainty have become the major incentive for Spanish families to save, which in the first quarter of the year, with the war in Ukraine already underway, soared almost 5% of their financial wealth, which in turn impeded investment in assets such as deposits, accounts, fixed income, mutual funds, insurance, etc.
The search for savings formulas was a constant in a few months, during which inflation also ran amok, with the axis of the impact of the pandemic still strongly present in the consumption behavior of households. According to statistics published on Monday by the Bank of Spain, the net financial wealth of households and non-profit institutions serving households (NPISH) amounted to 1.89 trillion euros in the first quarter, an increase of 4.8% in the interannual quarter. interest.
The figures also reflect a slight increase in household debt in absolute terms, although it decreased to 57% (compared to 62.7% in March) on the back of a higher GDP growth.
The total balance of financial assets (cash, shares, deposits and rental guarantees) of households and NPISHs reached a maximum of 2.65 trillion euros in the first quarter, 3.9% more than a year earlier and a figure equal to 214 .9% of GDP.
This recovery reflects the net acquisition of financial assets, which last year amounted to 80,300 million euros, concentrated in deposits and, to a lesser extent, in shares and mutual fund shares, to which was added a revaluation of €19.1 billion.
By component, the majority of household financial assets were held in cash and deposits (40% of the total), followed by equity shares (28%), mutual fund shares (15%) and insurance and pension funds (14% ).
In concrete terms, the component of investment fund holdings was the one that increased the most in household financial wealth (by 0.6 percentage point) year-on-year, while the weight of investment fund insurance and pensions decreased (-1.2 percentage point). points).
Consolidated corporate, household and NPI debt for NPIs stood at 1.66 trillion euros in the first quarter of the year, up 0.3% year-on-year, although it decreased by 134.7% of GDP compared to at 149.1% in March 2021, although it is still above 130.2% in March 2020.
Consolidated debt of non-financial corporations remained stable, from 960.9 billion in March 2021 to 960.4 billion in March 2022. In terms of GDP, it decreased to 77.7%, compared to 86.4% in March 2021.
On the other hand, household and NPI debt for NPIs went from 697,600 million in March 2021 to 703,900 million in the same quarter of 2022. The ratio to GDP decreased to 57%, a similar rate to the same period of 2020, compared to until 62.7% in March 2021.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
