Daily Management Review

Euler Hermes: Europe expects consumer boom


Insurance company Euler Hermes predicts an imminent consumer boom in Europe.

Herzi Pinki
Herzi Pinki
According to the authors of the report, the consumer boom will happen because of the excess savings, which households in the euro area have been able to accumulate during the pandemic COVID-19. This, in turn, will lead to an increased demand for goods and services.

Over the past year 2020, savings of European citizens increased by more than 50%. Experts estimate their surplus at €450 billion.

€170 billion may already be spent on goods and services in the near future. This amount is about 1.5% of the GDP of the eurozone.

Also, experts note that apart from increased savings due to restrictions in the service sector, the increased savings of Europeans is the result of support measures of the authorities. In many countries governments have introduced programmes to maintain employment, reduce taxes, and provide subsidies to businesses and citizens.

Financiers estimate that about two thirds of excess savings are held in current bank accounts and deposits. The rest of the money is invested in securities.

source: reutes.com