By: The Quinnipiac University Economics Research Team, Nicholas Ciampanelli
According to the National Bank of Slovakia, bank deposits grew by 2.1 billion Euros throughout the first two quarters of 2021, with 1.2 billion Euros being saved during the first quarter. Furthermore, this increased national deposits to a net total of 24.9 billion Euros. This major change in savings is largely driven by the COVID-19 pandemic, for the economic recession provoked households to increase their savings, changing the national savings rate to 22.8% (an net increase of 13% and a YOY increase of 17%). Despite this increased opportunity for investment, Slovakian savings are often unused because interest rates consistently remain near 0%, which is below the inflation rate. Furthermore, as savings continuously increase, inflation is expected to increase above 1-2%.
This article is based upon: https://spectator.sme.sk/c/22733636/slovak-bank-account-deposits-are-breaking-records.html