Updates: 03.03.2021 11:29
Published:

NEW YORK – Consumers in the world’s largest economies have amassed an additional $ 2.9 trillion (CZK 62.7 trillion) during epidemiological controls. This is significant money, which creates the possibility of a strong recovery from the recession, Bloomberg said, citing its calculations.

Families in the United States, China, the United Kingdom, Japan and most of the eurozone were saving money when they were forced to stay at home without going to a corona virus outlet. They are likely to continue to do so as restrictions last and governments distribute stimulus assistance.

Statistics show that the United States has more than half or $ 1.5 trillion in total. This is at least twice the average annual growth of gross domestic product (GDP) recorded during the last expansion, and this amount continues to grow.

Such savings should support economic recovery once the COV-19 is brought under control and the vaccine is expanded. Those who are hoping that people will return to the store, restaurants, entertainment venues, tourist attractions and sporting events and speed up the purchase of expensive items are now pushing the shopping waves, which are now often postponed. However, some doubt whether it is better not to use the money to pay off debts or whether consumers will not continue to accumulate it until the health crisis is completely over and the labor market is at its best.

In the United States, Bloomberg estimates that spending the money saved last year will lead to economic growth of up to nine percent instead of the expected 4.6 percent. If savings are not spent, the economy is likely to grow by only 2.2 percent.

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“The summer of 2020 has proven to be a false dawn, but it also shows how quickly the economy can move forward when the Govt-19 restrictions are lifted,” said Bloomberg economist Meva Cousin. According to him, the need for large household cash savings is one reason for the drastic increase.

The United States is not the only country with large savings. Chinese families transferred 2.8 trillion yuan (CZK 9.4 trillion) more to their bank accounts than usual. Similarly, in Japan, deposits increased by 32.6 trillion yen (CZK 6.6 trillion) and in the UK by 117 billion pounds (CZK 3.5 trillion). Among the largest eurozone countries, savings increased by 387 billion euros (10.1 trillion CZK), including 142 billion euros in Germany.

One of the factors that increases the willingness to spend is low interest rates. These reduce the attractiveness of savings accounts. On the other hand, there is a risk that people will decide to use savings to repay debt or to keep a balance due to current health risks or work concerns.

However, not everyone has enough money. They mainly saved high-income earners, while low-income families were forced to save and are likely to reduce them.

World Economy Fund Corona virus

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