Greek Household Deposits Up for Seventh Consecutive Year
This is attributed to a rise in disposable income for individuals, which in turn is associated with a drop in unemployment and a steady uptick in wages
Greek household deposits are expected to see a significant rise, as demonstrated by their bank deposits and investments in mutual funds. The total growth in savings over an eight-year span is projected to approach €50 billion.
This is attributed to a rise in disposable income for individuals, which in turn is associated with a drop in unemployment and a steady uptick in wages.
This year marks the seventh year in a row of growth in these financial metrics. Between 2017 and 2023, household balances in all types of bank accounts saw a cumulative increase of € 45.7 billion. This year, an additional 3 billion euros is expected to be added from the rise in deposits, bringing the total savings growth over the eight-year period close to €50 billion.
Although the increase in 2024 might be the smallest since 2017, assessing the trajectory of Greek household wealth requires considering other factors as well, such as net inflows into mutual funds. These inflows are anticipated to reach approximately 5 billion euros this year, funds which have exited bank accounts. Consequently, the overall increase in the liquid assets of individuals is estimated to hover around €8 billion.
The shift towards mutual funds does not necessarily indicate a change in savings culture, according to investment managers. Out of the €4.77 billion in net inflows, € 4.47 billion have been directed into bond-focused products with maturities ranging from 18 to 60 months.
Banking groups have launched numerous programs in this category over the last two years, allowing investors to achieve annual returns of over 3% with minimal risk until recently.
Source: tovima.com
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