consumers in Europe and the United States are not in a hurry to spend more than 2.7 trillion dollars of savings. According to Bloomberg, after the weakening of quarantine restrictions of savings in bank accounts in the eurozone decreased slightly, and in Italy an increase was still observed. Americans also refused to spend accumulated.
It can help families cope with rapidly growing heating accounts, but sluggish demand will limit the ability of enterprises to withstand permanent price increases, the publication notes. The total amount of extra savings accumulated since the beginning of the crisis is more than two trillion dollars in the United States (2.3 trillion) and almost 400 billion euros (464 billion dollars) in Europe.
Among the reasons why people are afraid to spend their money – anxiety about the growth of incidence of coronavirus and employment problems. “We do not see any signs that accumulated savings return to the economy,” said the Managing Director for Global Macroeconomics TS Lombard in London Dario Perkins.
In Europe and the United Kingdom, residents have accumulated about 700 billion euros of redundant savings, previously said Nick Nelson, responsible in the Financial Holding of UBS for the investment strategy in Europe.