Editor in chief at IamExpat Media
It’s not just Amazon’s Jeff Bezos who’s been lining his pockets during the coronavirus crisis. Starved of opportunities to spend their money and instead just stashing it away, private households in Germany are richer than ever before, according to new figures.
The financial assets of private households in Germany reached a record value of 6.738 billion euros in the third quarter of 2020, the Deutsche Bundesbank announced last week. That is 108 billion euros or 1,6 percent more than in the previous quarter.
According to estimates by DZ Bank, the financial assets of private households are likely to have increased by 393 billion euros to a maximum of 7,1 trillion euros in 2020 as a whole - mainly because private households saved like world champions during the early stages of the crisis.
Many people held onto their money for fear of being put on short-time work or losing their jobs, while the closure of retail outlets and travel restrictions put the brakes on consumption. According to the Federal Statistical Office, the savings rate rose to a record high of 16,3 percent last year. For every 100 euros of disposable income, households put an average of 16 euros away for a rainy day.
Private investors also benefited from the fact that the stock markets recovered comparatively quickly from the crash during the “first wave” of coronavirus in February and March. The period from July up to and including September was then “again characterised by high savings and a sustained recovery in the capital market,” the Bundesbank said.
The data does not reveal how people in Germany’s assets are distributed as to cash, securities, deposits in banks and claims against insurance companies. The Bundesbank also does not take into account real estate, which has been increasing in value for years.