In the first two years of Corona, the savings rate in Germany rises to new highs. Due to sharp price increases, however, less money is currently being put on the back burner. However, there are clear differences between households.
The sharp increase in inflation makes it difficult for many households to save. According to the Federal Statistical Office, the savings rate of private households, which has risen to a record high in two Corona years, was 11.1 percent in the first half of the year and thus roughly at the level of the pre-pandemic year 2019. On average, every 100 euros of disposable income 11.10 euros put aside. This corresponds to an average monthly amount of 240 euros per inhabitant.
“Sharp price increases, especially for energy and food, are currently making it increasingly difficult for many households to put money aside and save,” emphasized the statisticians. At 10.0 percent, the inflation rate was the highest since 1951, which is eroding the purchasing power of consumers. According to economists’ forecasts, private consumption will initially fail to support the economy.
However, there are very clear differences depending on income level, propensity to save and living situation, explained the Wiesbaden authority. While some households were still able to put a lot of money aside, others had nothing left at the end of the month.
In the first half of 2021, the savings rate rose to a record 18.2 percent due to the corona restrictions. During the pandemic, many people had more money left over than in normal times, for example because vacation trips were canceled and leisure facilities were temporarily closed. The lifting of many restrictions in the second half of 2021 has already caused the savings rate to fall to 12.1 percent.
In a survey by the German Economic Institute (IW), only every second person (50 percent) stated that they were currently able to regularly put money aside. In the Corona crisis year 2020 it was still 70 percent. The decline is particularly evident among those who have less than 1,500 euros available per month, as can be seen from the evaluation published on Monday. According to this, in 2020 one in three (35 percent) was still able to cover something, recently it was only one in five (20 percent).
The aggregate savings volume of private households for the first six months of this year is estimated at 121.2 billion euros. The ratio results from the savings of all private households measured against their total disposable income including company pension entitlements. Valuation-related changes such as price gains or losses in the case of shares and changes in the value of real estate do not count as savings because they did not arise from earned income.
