- Developed-market (DM) household savings recorded a significant gain last year, with an increase equivalent to 10% of combined gross domestic product (GDP).
- This build-up is likely to bolster consumption as restrictions on economic and social activity are removed and pent-up demand unlocked.
- But the accompanying deterioration in public sector balance sheets and uneven distribution of surplus savings mean the impact is unlikely to be anywhere near as big as the headline numbers suggest.
For further details see:
Will Household Savings Provide An Upside Growth Surprise?