Household savings soared by 70.6% in 2023 due to lower inflation and salary increases

Household savings soared by 70.6% in 2023 due to lower inflation and salary increases


Spanish households raised the savings rate on their disposable income in 2023 to 11.7%, a figure more than four points higher than that registered in 2022, which was driven by gross savings 70.6% higher than in 2022 , the toughest year for inflation in recent decades.

According to the Non-Financial Quarterly Accounts of the Institutional Sectors published this Tuesday by the National Institute of Statistics (INE), the household savings rate was settled positive for the fifth consecutive quarter and increased 2.3 points compared to the end of 2022.

In the last quarter of last year, the gross disposable income of households (includes non-profit institutions serving households and takes into account income and wealth taxes, social contributions and benefits, and other current transfers) grew by 9.8%, to 250,382 million euros, while final consumption spending rose 6.9%, year-on-year, to 206,731 million euros.

Without losing sight of the uncertainty that sows behaviors guided by prevention or fear to what may happen – in the fourth quarter the rumors about the start of the rate cut by the European Central Bank (ECB) they had not yet been officialized– homes They once again spent less than they earned, but this time also accompanied by a CPI in full moderation, which led to savings that in the last quarter shot up to 43,191 million, 26.8% more than a year before. The figure far exceeds that of the third quarter, when savings were 7,334 million, but does not reach the level of what was saved in the second quarter (49,911 million).

Once capital transfers from the sector (acquisitions or sales of assets) have been discounted, households showed a financing capacity of 23,017 million euros in the last quarter of the year, above the 19,571 million in 2022 (+17.6% ).

Households saved 108,139 million euros in 2023

The quarterly reading extends to the annual performance, mainly inflation dealt a much smaller blow than before. In 2023, households recorded a gross disposable income of 923,560 million euros, 11% more than in 2022, which is explained in the increase in salaries (8.8%), social benefits (9.9%) and property income (56.4%). Final consumption spending, for its part, was 813,066 million (+6.1%), which placed the savings at 108,139 million euros, 70.6% more than in 2022 (63,379 million).
This savings was enough to finance the investment of 64,539 million euros that they made throughout the year (+8.1%), so they showed a financing capacity of 42,361 million euros, the highest since 2021, compared to the financing capacity of 2,500 million 2022.

The financing capacity of the economy improves

In 2023, the Spanish economy as a whole showed a financing capacity of 54,013 million euros, a figure equivalent to 3.7% of GDP. This amount is almost 33,300 million euros higher than in 2022 (20,746 million, 1.5% of GDP). This is due to the financing capacity recorded by householdsfinancial institutions and non-financial corporations, compared to public administrations (AAPP), which presented a deficit of 53,159 million euros last year, indicates Statistics.

All in all, the AAPP deficit recorded in 2023 is lower than that of 2022, which was 63,736 million euros, and the least pronounced since 2019, while non-financial companies showed a financing capacity of 32,028 million euros in 2023 , below the 41,626 million in 2022, and non-financial institutions presented a ‘surplus’ of 32,783 million euros, below the 40,356 million euros of the previous year.

The INE estimates that the gross national income of the economy stood at 1,452,661 million euros in 2023 as a whole, 7.4% higher than that of 2022.



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