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Record in the corona crisis: German households have more financial assets than ever before

2021-10-14T13:09:23.880Z

Although relaxed corona rules stimulate consumption, the private financial wealth of Germans has reached a record level. This is also due to the growing popularity of stocks.



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Lockers in a Hamburger Sparkasse (archive image)

Photo: Daniel Reinhardt / DPA

Even after the gradual easing of the corona restrictions, people in Germany kept their money together.

At the same time, they benefited from the rise in stock exchange prices - financial assets climbed to a record high in the second quarter.

According to the Bundesbank, the assets of private households from cash, securities, bank deposits and claims against insurance companies rose by 159 billion euros compared to the first quarter to 7325 billion euros.

Economists expect a further increase in the course of the year.

The Bundesbank data does not reveal how the enormous sum is distributed.

According to a study by Allianz, assets worldwide also rose to a new record despite the corona crisis.

Although the gradual easing of the restrictions to combat the corona pandemic boosted German consumers' propensity to spend in the second quarter, the savings rate fell, according to data from the Federal Statistical Office.

Yet people continued to put money on the high edge.

Cash and bank deposits, for example in current and overnight accounts, continued to be the largest item at a good 2910 billion euros at the end of June.

Around 52 billion euros were added in the second quarter.

At the same time, the more risk averse savers in Germany are increasingly daring to go to the stock market.

"Liquid investments or those perceived as low-risk are still very popular overall, but private households have been increasing their exposure to the capital market for years," summarized the central bank.

In the second quarter, for example, private households bought investment fund shares for 24 billion euros and shares for 7 billion euros.

According to the Bundesbank, valuation gains on shares and investment fund shares played a significant role in the growth in financial assets in the second quarter.

According to the Bundesbank, private households invested slightly less money than in the previous quarters in insurance and other pension products.

Here inventories increased by around 20 billion euros to around 2529 billion euros.

Eight trillion next year?

DZ Bank expects a further increase in financial assets in the current year.

According to DZ Bank economist Michael Stappel, people are likely to save less than in 2020 thanks to the increasing relaxation of the corona restrictions. Nevertheless, thanks to increases in the value of stocks, funds and certificates, financial assets will probably rise to 7.6 trillion euros, it said in an analysis by the leading cooperative institute published in the summer.

In the next year, a further increase to then almost 8 trillion euros is to be expected.

After deducting debts, net financial assets rose by around 130 billion euros compared with the first quarter to 5336 billion euros.

Real estate, which has shown strong increases in value for years, is not included in the data.

dab / dpa

Source: spiegel

All business articles on 2021-10-14

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