Spain, the second EU country where inflation consumes the savings rate the most

this spanish houses they are second in all Europe with more capacity. saving lost in the first quarter of the year, hit by the fugitive inflation. Spain Then AustriaThe second situation where the savings rate of 27 clubs fell the most, especially 2.1% Compared to the previous quarter, according to data updated by Eurostat this Wednesday. A slightly upward evolution in the EU as a whole, with a reference increase of 0.1% compared to the end of 2021. fees The majority of Spanish workers, growing at half the EU average, explains some of the current lack of capital for families.

The price scale is depleting Spaniards’ reserves more strongly than that of the vast majority of their European neighbours, who are already recording higher savings rates on average. Spain chained two consecutive quarters with declines in deposits and savings rates fell last year, data updated by Eurostat 6.6 pointsFrom 14.1% in the first quarter of 2021 to 7.5% at the beginning of 2022. This calculation is the result of families’ savings divided by the volume of their gross income.

While current family savings levels are similar to pre-pandemic, health restrictions during this period resulted in an unprecedented increase in deposits of households – especially those with middle-to-high income and those who maintained their salaries during the pandemic – due to impossibility. spending without open restaurants, tourism or entertainment. In other words, in March 2022 Spanish households had already exhausted this ‘extra’ leveraged income during the pandemic.

Same expense, less income

Although the decline in savings rates in previous quarters was explained by other factors, it was driven by the decline in household disposable income in the first quarter of 2022. Consumption, education and investment continued to increase, but fell 1.4% compared to the last quarter of 2021. The key difference between Spanish and European households is that Spaniards maintain similar levels to those of Europeans, although they reduce their spending, but there is a decline in their income (which continues to rise in Europe).

Part of the explanation for this lies in other indicators. Fedea foundation published its monthly newsletter last Tuesday in which it dedicates a section on fees and interest rates. Based on data from Eurostat itself, this highlights the evolution of wages in both Spain and the EU average, resulting in the following conclusion: Wages are growing at half that in Europe, while losing their purchasing power in the Old Continent. Specifically, the index of labor cost per hour worked increased from just over 4% in the EU as a whole to just over 2% in the first quarter of the year.

Source: Informacion

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