Households in Eurozone are saving more

The gross saving rate of households has been gradually increasing in the Eurozone. If we exclude the pandemic period (when the saving rate surged), the gross saving rate is the highest in the decade. Prior to the pandemic, the average saving rate was around 12%, while in 2Q24, it was reported to reach 15.6% in the Eurozone. Although we do not see the breakdown for CEE countries, we would expect a quite similar trend. The Economic Indicator Sentiment survey data point out that the willingness to save over the next 12 months is as high as it was during the pandemic, suggesting that households are using recent increases in disposable income not only for consumption but also for saving purposes. Such behavior of households may postpone the dynamics of the recovery.