2023-07-20 07:14:13
By reducing the possibility of household consumption, the sanitary confinements of 2020/2021 led to the constitution of “oversaving”. Has it now been spent? Not completely, estimates the German management DWS. 136089979/weyo – stock.adobe.com
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Are the consequences of Covid-19 over? Not so fast, according to German management DWS (more than 800 billion euros in assets). Example: the excess savings accumulated during the pandemic. According to the Fedil «largely melted in the spring of 2023», and should disappear by the end of the year.
When cash meets increases
But according to specialists, the decline is concentrated among the 20% of the wealthiest households, those whose marginal propensity to consume is the lowest. The other classes, they,retain some firepower“and the working poor recorded, in the face of inflation, wage increases”above average». Consequently, “the remaining reserve of savings in these groups should soften the blow, if and when the economy finally starts to contract», DWS prognosis.
Are savings still what they used to be?
Beware also of possible methodological bias: “savings surplus estimates [de la Fed] implicitly assume that households will be far more frugal than pre-pandemic trends…
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