- Part of these savings was the result of households taking a more cautious stance against an increasingly uncertain economic backdrop (precautionary savings).
- Our estimates suggest that a large majority of the excess savings (around 85%) built-in 2020 were 'forced' owing to the impossibility to purchase certain goods or services as a result of coronavirus disease 2019 (COVID-19) restrictions.
- This opens the door to a large increase in private consumption once restrictions are eased, which we currently expect to happen late in the second quarter of 2021.
- However, we assess that savings will remain above their pre-pandemic level during the rest of 2021, as many factors are still likely to weigh down on spending.
For further details see:
Eurozone Household Finances