After the gradual easing of the corona restrictions, people in Germany are not suddenly spending a lot, but are keeping their money together. At the same time, they benefited from the significantly higher stock exchange prices. The result: financial assets climbed to a record high in the second quarter. According to the Deutsche Bundesbank, the wealth of private households from cash, securities, bank deposits and claims against insurance companies rose by 159 billion euros compared to the first quarter to 7.325 trillion euros. Economists expect a further increase in the course of the year. The Bundesbank data does not reveal how the enormous sum is distributed in detail. Properties that have seen strong increases in value for years are not included.
Although the desire to consume increased after the gradual relaxation of the corona restrictions in the second quarter, the savings rate fell according to data from the Federal Statistical Office. Still, people keep saving. Cash and bank deposits in current and overnight accounts, for example, continued to be the largest item at a good 2910 billion euros at the end of June. Around 52 billion euros were added in the second quarter. Savers do not earn anything because of the low interest rates, but they can access their money quickly if necessary. At the same time, the more risk averse savers in Germany are increasingly daring to go to the stock market.
“Liquid investments or those perceived as low-risk are still very popular overall, but private households have been increasing their exposure to the capital market for years,” the Bundesbank stated. In the second quarter, for example, private households bought investment fund shares for 24 billion euros and shares for seven billion euros. According to the Bundesbank, valuation gains on shares and investment fund shares played a significant role in the growth in financial assets in the second quarter. Private households invested a little less money in insurance and other pension products than in the previous quarters. Here inventories increased by around 20 billion euros to around 2529 billion euros.
DZ Bank expects a further increase in financial assets in the current year. According to DZ Bank economist Michael Stappel, people are likely to save less than in 2020 thanks to the increasing relaxation of the corona restrictions. Nevertheless, thanks to increases in the value of stocks, funds and certificates, financial assets are likely to rise to 7.6 trillion euros, it said most recently an analysis of the top cooperative institute. In the next year, a further increase to then eight trillion euros is to be expected.