The significantly increased expenses for food, fuel and heating are one reason why low-income households in particular will hardly be able to put any money aside this year.

But even higher-income households have been saving less since the end of the corona restrictions.

In a study, DZ Bank comes to the conclusion that the private savings rate in Germany is likely to fall from 15 percent last year to 10 percent this year.

Christian Siedenbiedel

Editor in Business.

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The private savings rate had reached its highest level since the beginning of the calculation in the year before last with 16.1 percent.

The ratio is calculated as the share of disposable household income that is saved rather than consumed.

The DZ Bank sees in the decline, among other things, a normalization of savings after the special situation of the Corona period.

Financial assets only grow more slowly

All of this also has an impact on the financial assets of Germans.

The weaker savings compared to the record years 2020 and 2021 and the consequences of price corrections on the stock markets caused the private financial assets of Germans to grow more slowly this year.

"We expect growth of 2.3 percent to a good 8 trillion euros, and next year the accumulation of assets should progress faster again at 5.3 percent," writes the bank.

DZ Bank describes it as unusual that in such uncertain times as in the face of war, people don't save more, but less.

A certain precautionary saving would actually be expected.

"Normally, private households react to growing uncertainty in times of crisis by putting more money on the sidelines," writes Michael Stappel, Head of Macroeconomics and Industry Research at DZ Bank.

But he says the savings rate would have fallen even more if the war hadn't happened.

"Without the Ukraine war, the end of the corona restrictions from this spring would probably have led to a revival in consumption and the savings rate would have fallen well below its long-term average."

Inflation hits low income earners in particular

The savings rate in 2022 and 2023 is likely to level off at around 10 percent, close to the average level.

The need to cover more in uncertain times is offset by a huge backlog from the phase of the corona restrictions.

As a result of lockdown measures and border closures, shops and inns were closed at times, culture and leisure activities were only possible to a very limited extent and many households were forced to forgo longer vacation trips.

The additional savings were often not invested, but simply remained in the current account.

Liquid funds would therefore be available for the pent-up consumer needs if it weren't for the war, which is dampening consumer spending and increasing supply chain problems, which have led to waiting times when buying new cars, for example.

Added to this is inflation: the federal government's relief package, which was launched because of the high energy prices, can only partially compensate for the consequences of the high inflation.

Especially with smaller incomes there is less and less left to save.

For the current year, DZ Bank is expecting a record inflation rate of 6.8 percent - and in 2023 inflation is likely to remain well above the European Central Bank's target of 3.6 percent.