Danes are richer than ever, so why are they sitting on their wealth?

The gap between private consumption and household wealth is the biggest it's been in three decades in Denmark

In the world-record holder of negative rates, there’s been another eye-catching development.

Danes are richer than ever before, according to central bank data on savings and home equity. But they’re spending less, in relative terms. The gap between private consumption and household wealth is the biggest it’s been in three decades.

The development has economists scratching their heads, in part because it’s cheaper than ever to borrow after six years of negative interest rates.

“It’s clearly difficult to come up with an explanation for the continued muted consumption," said Christian Heinig, chief economist at Realkredit Danmark, the mortgage arm of Danske Bank A/S.