José Luis M. Campuzano (Spanish Banking Association) | This week the Bank of Spain published an interesting analysis of household financial flows and balances at the end of 2018. Families have continued to reduce bank debt to 96% of gross disposable income (gross disposable household income – GDHI) and 59% of GDP.
spanish households savings
The Spanish economy capacity for financing abroad has contracted in annual terms to 2015 lows, points Bankia Estudios, in the process undermining the process of deleveraging when global indebtedness still remains at excessive levels.In the case of households, even if disposable income has seen a big increase as a result of the recovery in wages, the greater rhythm in consumption has led to a new fall in savings.
Spanish households reduced their savings efforts marginally in the third quarter of 2017. Despite the Spanish banks’ attempts to offer positive returns on deposits against a backdrop of negative interest rates from the ECB, families are looking for greater returns from other kinds of financial assets like investment funds.