This box provides updated evidence on developments in the household saving rate and its recent drivers. It shows that income and consumption have grown at similar rates since mid-2024, stabilising the saving rate at a...
Overview
The household saving rate revisited: recent dynamics and underlying drivers. This box provides updated evidence on developments in the household saving rate and its recent drivers. It shows that income and consumption have grown at similar rates since mid-2024, stabilising the saving rate at a level well above its pre-pandemic average. Model-based evidence suggests that lower real interest rates and rising real net wealth have increased incentives to consume, but that these effects have not fully offset the fact that savings continue to be supported by strong labour inco
