Consumers have $5.4 trillion in excess savings globally
Tuesday, 04 20 2021, Category: Economy, Country: World
Consumers around the world have amassed an extra $5.4 trillion in savings since the coronavirus pandemic began, setting the stage for a spending boom that could power a strong uplift in economic growth this year.
Households had stockpiled the excess savings, equal to 6% of global GDP, by the end of March, according to Moody's Analytics. The savings are on top of what they would have saved if the pandemic had not occurred and saving behavior had been the same as in 2019, chief economist Mark Zandi said in a research note on Monday.
The United States boasts the largest share of excess saving, amounting to $2.6 trillion, or 12% of US GDP, with the United Kingdom close behind at 10% of GDP.
In general, excess saving is at its highest in North America and Europe where lockdowns and government support have been most significant, according to Zandi.
Many wealthier households whose incomes haven't been affected by the pandemic have built up savings that they otherwise would have spent on travel, entertainment and eating out.