World Savings Day
31 October, World Savings Day
Households in Slovenia saved less on average in 2022 compared to 2021. The growth of their financial assets slowed down considerably, while the growth of liabilities strengthened. Average indebtedness remained low compared to the euro area and the European Union average.
In 1924, at the first international congress of savings banks in Milan Italy, 354 representatives of approximately 7,000 savings banks and their branches from 27 countries selected 31 October to be the World Savings Day. The main goal of the congress was to encourage the population to save, especially in the form of deposits on accounts in commercial banks and savings banks.
The World Savings Day is intended to promote savings across the world and to raise awareness of the public about the importance of saving for modern economies and individuals. According to the latest data, the World Savings Day is celebrated in 80 countries.
What is saving and what are the most important motives for it?
Household saving represents that part of disposable income that is not spent for the purchase of durable goods, consumer goods and services, but is saved. Household savings thus equal disposable income less final consumption.
The ECB research showed that the most important motives for saving of households in euro area countries are ensuring of funds in case of unexpected events, ensuring an income at retirement, provision of funds for larger purchases (additional housing, furniture, vehicles) and saving for travelling (vacations), education and financial support for children or grandchildren.
Last year, households in Slovenia saved on average a slightly lower share of their disposable income than a year earlier
The gross saving rate of households (share of gross saving in gross disposable income) in Slovenia has been gradually decreasing after a record-high rate of 21.9% in 2020. In 2022, it decreased by 3.3 percentage points compared to 2021, reaching 14.0%. Despite this decline, it remained slightly higher than the long-term average of 13.8%.
Based on the latest available data from Eurostat, in 2022 the gross household saving rate was the highest in Germany at 19.9% and the lowest in Slovakia at 5.2%. In Slovenia, it was the fifth highest among the observed EU member states, and at the same time, it was slightly above the average in the euro area (13.5%) and in the European Union (12.6%).
In 2022, the gross household savings rate in all observed EU member states lower than in the previous year
Households’ decisions regarding consumption and savings are significantly influenced by their disposable income. In 2022, the nominal growth of gross disposable income continued in all selected EU member states (data were available for 11 countries). Compared to 2021, growth was the highest in Czechia (15.6%) and the lowest in Sweden (2.0%). In Slovenia, it was 9.8%, and exceeded the average growth of gross disposable income of households in the euro area (6.4%) and in the European Union (7.2%). In the other observed countries, the growth of gross disposable income ranged from 4.1% to 10.9%.
Expenditures allocated by households for consumption increased in all observed EU member states. Compared to 2021, growth was the highest in Czechia (by 19.2%) and the lowest in Sweden (by 3.9%). In Slovenia, it was 14.0%, which is slightly higher than the average growth of household final consumption expenditure in the euro area (11.5%) and in the European Union (12.0%). In the other observed countries, the growth of household final consumption expenditure ranged from 7.9% to 18.4%.
The gross household savings rate decreased in all observed EU member states, due to a higher growth of household final consumption expenditure compared to the growth of their disposable income. Compared to 2021, decrease in gross household saving rate was the highest in Spain (by 6.2 percentage points) and the lowest in Sweden (by 2.1 percentage points). In the other observed countries, the gross household saving rates decreased within the range of 2.8 p.p. to 5.7 p.p.
The growth of households’ financial assets in Slovenia significantly slowed down last year
At the end of 2022, household financial assets (currency and deposits, shares, etc.) amounted to EUR 73.6 billion. After a record increase in 2021 (by EUR 7.8 billion or by 12.3%), in 2022 they increased to a significantly lesser extent (by EUR 2.7 billion or by 3.8%).
Despite the period of low interest rates on deposits and nominal growth of disposable income, household bank deposits contributed the most to the increase in household financial assets over the previous year (by EUR 2.0 billion), with their year-on-year increase remaining close to the historically highest estimated value from 2020 (by EUR 2.3 billion). Shares and other equity (by EUR 0.5 billion), currency (by EUR 0.3 billion), trade credits and other accounts receivable or payable (by EUR 0.2 billion) and loans (by EUR 0.1 billion) also made a noticeable contribution to the increase in household financial assets in the observed period. However, insurance and pension schemes (EUR −0.3 billion) and debt securities (EUR −0.03 billion) contributed to the decrease in household financial assets during the observed period.
The ratio of household financial assets to GDP has steadily increased in Slovenia over the past seven years. However, in 2022, it significantly decreased year-on-year by 6.6 percentage points, representing 129.1% of GDP. This ratio is considerably lower compared to the euro area (216.2% of GDP) and the European Union (212.1% of GDP) average.
Households in Slovenia remain conservative and risk averse in their investment decisions
The structure of household financial assets in Slovenia did not change significantly compared to previous years. The highest share is still represented by currency and deposits (49.2%; share of deposits was 39.3%), followed by shares and other equity (31.7%), insurance and pension schemes (11.6%), debt securities, trade credits and other accounts receivable or payable (together 5.3%) and loans (2.3%).
The share of savings in the form of deposits increased notably compared to the previous year (by 1.4 percentage points). There was a slight increase in the shares of loans (by 0.1 p.p.), and currency and debt securities, trade credits and other accounts receivable or payable (together by 0.06 p.p.). However, the shares of debt securities (by 0.1 p.p.), shares and other equity (by 0.6 p.p.) and insurance and pension schemes (by 0.9 p.p.) decreased slightly.
Such a structure of financial assets reflects that households in Slovenia remain conservative and risk-averse in their investment decisions, as currency and deposits still comprise nearly half of their financial wealth. The increase in the share of deposits during the period of low interest rates on deposits in recent years also reflects households' tendency to maintain liquidity and indicates a high level of confidence in the banking system. The shares of riskier investments, such as investment fund shares or units, debt securities, and financial derivatives, remain relatively low.
Currency and deposits are also prevalent in the euro area (in 2022: 35.5%; within these, the share of deposits amounted to 32.2%), but the share is much lower than in Slovenia. Households in the euro area have, on average, a higher share of assets in the form of insurance and pension schemes (27.7%) and slightly less in the form of shares and other equity (31.4%) and loans (0.2%) than households in Slovenia.
The growth of household financial liabilities in Slovenia last year was higher than in the previous year and exceeded the growth rates from the years before the pandemic
At the end of 2022, household financial liabilities in Slovenia (loans and other liabilities) amounted to EUR 16.6 billion or 29.2% of GDP (in the euro area 61.7% of GDP, and in the European Union 60.0% of GDP). Compared to 2021, they were higher by EUR 1.0 billion (or 6.3%) and exceeded the values from the years before the pandemic. Nevertheless, year-on-year growth of liabilities remain lower than before the onset of the 2008 economic and financial crisis (the year-on-year growth of liabilities was 5.7% in 2018, 4.2% in 2019, stagnated in 2020, and reached 6.1% in 2021). In particular, long-term loans increase (by EUR 954 million) stood out. Long-term loans are mainly intended for financing the purchase of residential real estates (repayment maturity longer than one year).
The highest share in the structure of household financial liabilities in Slovenia is represented by loans (88.8%), which were 0.9 of a percentage point higher than in 2021, mainly due to the increase in the share of long-term loans in the structure of financial liabilities. The share of trade credits and advances and other accounts receivable or payable was together 0.9 p.p. lower than in 2021 and represented 11.2% of total household financial liabilities. Within these, the share of trade credits and advances decreased slightly more (by 0.6 p.p.) than the share of other accounts receivable or payable, excluding trade credits and advances (by 0.3 p.p.).
Similarly, households in the euro area have, on average, the highest share of financial liabilities from long-term loans (88.3%). Compared to households in Slovenia, this share is slightly higher on average. On average, households in the euro area have a lower share of liabilities, especially from trade credits and advances (2.8%) and short-term loans (2.8%) than households in Slovenia.
The value of net financial assets (the difference between financial assets and liabilities) of households in Slovenia increased by EUR 1.7 billion compared to 2021 (or by 3.1%). At the end of 2022, it amounted to EUR 57.0 billion or 99.9% of GDP and was significantly lower than in the euro area (154.5% of GDP) and in the European Union (152.1% of GDP).
The growth of housing loans to households in Slovenia was the most pronounced last year
Among the individual types of loans, housing loans maintained positive dynamics during the observed period and grew steadily. After 2020, the growth of housing loans increased significantly, while other loans are growing moderately again. Consumer loans grew significantly faster than housing and other loans in the period from 2017 to 2020. After that, growth of consumer loans declined, but in 2022 it somewhat strengthened again. Housing loans in 2022 were 53.6% higher than in 2014 and greatly exceeded the growth of consumer loans (by 29.2 percentage points) and other loans (by 30.9 percentage points).
The average indebtedness of households in Slovenia remains more than half lower than the euro area and the European Union average
Households’ debt in Slovenia (measured as the ratio of financial liabilities from loans and gross disposable income) declined in 2022 compared to 2021 (by 0.9 p.p.) and stood at 41.3%. Similarly, household indebtedness in the euro area and in the European Union was lower on average last year compared to the year before (by 2.5 p.p. and by 4.1 p.p., respectively). According to this indicator, households’ indebtedness in Slovenia was on average much lower than the average households’ indebtedness in the euro area (91.8%) and in the European Union (91.1%).
The World Savings Day is intended to promote savings across the world and to raise awareness of the public about the importance of saving for modern economies and individuals. According to the latest data, the World Savings Day is celebrated in 80 countries.
What is saving and what are the most important motives for it?
Household saving represents that part of disposable income that is not spent for the purchase of durable goods, consumer goods and services, but is saved. Household savings thus equal disposable income less final consumption.
The ECB research showed that the most important motives for saving of households in euro area countries are ensuring of funds in case of unexpected events, ensuring an income at retirement, provision of funds for larger purchases (additional housing, furniture, vehicles) and saving for travelling (vacations), education and financial support for children or grandchildren.
Last year, households in Slovenia saved on average a slightly lower share of their disposable income than a year earlier
The gross saving rate of households (share of gross saving in gross disposable income) in Slovenia has been gradually decreasing after a record-high rate of 21.9% in 2020. In 2022, it decreased by 3.3 percentage points compared to 2021, reaching 14.0%. Despite this decline, it remained slightly higher than the long-term average of 13.8%.
Based on the latest available data from Eurostat, in 2022 the gross household saving rate was the highest in Germany at 19.9% and the lowest in Slovakia at 5.2%. In Slovenia, it was the fifth highest among the observed EU member states, and at the same time, it was slightly above the average in the euro area (13.5%) and in the European Union (12.6%).
In 2022, the gross household savings rate in all observed EU member states lower than in the previous year
Households’ decisions regarding consumption and savings are significantly influenced by their disposable income. In 2022, the nominal growth of gross disposable income continued in all selected EU member states (data were available for 11 countries). Compared to 2021, growth was the highest in Czechia (15.6%) and the lowest in Sweden (2.0%). In Slovenia, it was 9.8%, and exceeded the average growth of gross disposable income of households in the euro area (6.4%) and in the European Union (7.2%). In the other observed countries, the growth of gross disposable income ranged from 4.1% to 10.9%.
Expenditures allocated by households for consumption increased in all observed EU member states. Compared to 2021, growth was the highest in Czechia (by 19.2%) and the lowest in Sweden (by 3.9%). In Slovenia, it was 14.0%, which is slightly higher than the average growth of household final consumption expenditure in the euro area (11.5%) and in the European Union (12.0%). In the other observed countries, the growth of household final consumption expenditure ranged from 7.9% to 18.4%.
The gross household savings rate decreased in all observed EU member states, due to a higher growth of household final consumption expenditure compared to the growth of their disposable income. Compared to 2021, decrease in gross household saving rate was the highest in Spain (by 6.2 percentage points) and the lowest in Sweden (by 2.1 percentage points). In the other observed countries, the gross household saving rates decreased within the range of 2.8 p.p. to 5.7 p.p.
The growth of households’ financial assets in Slovenia significantly slowed down last year
At the end of 2022, household financial assets (currency and deposits, shares, etc.) amounted to EUR 73.6 billion. After a record increase in 2021 (by EUR 7.8 billion or by 12.3%), in 2022 they increased to a significantly lesser extent (by EUR 2.7 billion or by 3.8%).
Despite the period of low interest rates on deposits and nominal growth of disposable income, household bank deposits contributed the most to the increase in household financial assets over the previous year (by EUR 2.0 billion), with their year-on-year increase remaining close to the historically highest estimated value from 2020 (by EUR 2.3 billion). Shares and other equity (by EUR 0.5 billion), currency (by EUR 0.3 billion), trade credits and other accounts receivable or payable (by EUR 0.2 billion) and loans (by EUR 0.1 billion) also made a noticeable contribution to the increase in household financial assets in the observed period. However, insurance and pension schemes (EUR −0.3 billion) and debt securities (EUR −0.03 billion) contributed to the decrease in household financial assets during the observed period.
The ratio of household financial assets to GDP has steadily increased in Slovenia over the past seven years. However, in 2022, it significantly decreased year-on-year by 6.6 percentage points, representing 129.1% of GDP. This ratio is considerably lower compared to the euro area (216.2% of GDP) and the European Union (212.1% of GDP) average.
Households in Slovenia remain conservative and risk averse in their investment decisions
The structure of household financial assets in Slovenia did not change significantly compared to previous years. The highest share is still represented by currency and deposits (49.2%; share of deposits was 39.3%), followed by shares and other equity (31.7%), insurance and pension schemes (11.6%), debt securities, trade credits and other accounts receivable or payable (together 5.3%) and loans (2.3%).
The share of savings in the form of deposits increased notably compared to the previous year (by 1.4 percentage points). There was a slight increase in the shares of loans (by 0.1 p.p.), and currency and debt securities, trade credits and other accounts receivable or payable (together by 0.06 p.p.). However, the shares of debt securities (by 0.1 p.p.), shares and other equity (by 0.6 p.p.) and insurance and pension schemes (by 0.9 p.p.) decreased slightly.
Such a structure of financial assets reflects that households in Slovenia remain conservative and risk-averse in their investment decisions, as currency and deposits still comprise nearly half of their financial wealth. The increase in the share of deposits during the period of low interest rates on deposits in recent years also reflects households' tendency to maintain liquidity and indicates a high level of confidence in the banking system. The shares of riskier investments, such as investment fund shares or units, debt securities, and financial derivatives, remain relatively low.
Currency and deposits are also prevalent in the euro area (in 2022: 35.5%; within these, the share of deposits amounted to 32.2%), but the share is much lower than in Slovenia. Households in the euro area have, on average, a higher share of assets in the form of insurance and pension schemes (27.7%) and slightly less in the form of shares and other equity (31.4%) and loans (0.2%) than households in Slovenia.
The growth of household financial liabilities in Slovenia last year was higher than in the previous year and exceeded the growth rates from the years before the pandemic
At the end of 2022, household financial liabilities in Slovenia (loans and other liabilities) amounted to EUR 16.6 billion or 29.2% of GDP (in the euro area 61.7% of GDP, and in the European Union 60.0% of GDP). Compared to 2021, they were higher by EUR 1.0 billion (or 6.3%) and exceeded the values from the years before the pandemic. Nevertheless, year-on-year growth of liabilities remain lower than before the onset of the 2008 economic and financial crisis (the year-on-year growth of liabilities was 5.7% in 2018, 4.2% in 2019, stagnated in 2020, and reached 6.1% in 2021). In particular, long-term loans increase (by EUR 954 million) stood out. Long-term loans are mainly intended for financing the purchase of residential real estates (repayment maturity longer than one year).
The highest share in the structure of household financial liabilities in Slovenia is represented by loans (88.8%), which were 0.9 of a percentage point higher than in 2021, mainly due to the increase in the share of long-term loans in the structure of financial liabilities. The share of trade credits and advances and other accounts receivable or payable was together 0.9 p.p. lower than in 2021 and represented 11.2% of total household financial liabilities. Within these, the share of trade credits and advances decreased slightly more (by 0.6 p.p.) than the share of other accounts receivable or payable, excluding trade credits and advances (by 0.3 p.p.).
Similarly, households in the euro area have, on average, the highest share of financial liabilities from long-term loans (88.3%). Compared to households in Slovenia, this share is slightly higher on average. On average, households in the euro area have a lower share of liabilities, especially from trade credits and advances (2.8%) and short-term loans (2.8%) than households in Slovenia.
The value of net financial assets (the difference between financial assets and liabilities) of households in Slovenia increased by EUR 1.7 billion compared to 2021 (or by 3.1%). At the end of 2022, it amounted to EUR 57.0 billion or 99.9% of GDP and was significantly lower than in the euro area (154.5% of GDP) and in the European Union (152.1% of GDP).
The growth of housing loans to households in Slovenia was the most pronounced last year
Among the individual types of loans, housing loans maintained positive dynamics during the observed period and grew steadily. After 2020, the growth of housing loans increased significantly, while other loans are growing moderately again. Consumer loans grew significantly faster than housing and other loans in the period from 2017 to 2020. After that, growth of consumer loans declined, but in 2022 it somewhat strengthened again. Housing loans in 2022 were 53.6% higher than in 2014 and greatly exceeded the growth of consumer loans (by 29.2 percentage points) and other loans (by 30.9 percentage points).
The average indebtedness of households in Slovenia remains more than half lower than the euro area and the European Union average
Households’ debt in Slovenia (measured as the ratio of financial liabilities from loans and gross disposable income) declined in 2022 compared to 2021 (by 0.9 p.p.) and stood at 41.3%. Similarly, household indebtedness in the euro area and in the European Union was lower on average last year compared to the year before (by 2.5 p.p. and by 4.1 p.p., respectively). According to this indicator, households’ indebtedness in Slovenia was on average much lower than the average households’ indebtedness in the euro area (91.8%) and in the European Union (91.1%).
METHODOLOGICAL NOTE
In this release, the term households is used for the household sector, including the sector of non-profit institutions serving households (NPISH). Data are available only for the two sectors together. The impact of NPISHs on the total value is small and usually negligible.
All the data are stated in nominal values and are not seasonally adjusted.
All the data are stated in nominal values and are not seasonally adjusted.
When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.
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