Page 2 - Household Savings

Household savings rate plummeted to five-decade low in 2022-23: RBI

The household savings rate plummeted to a five-decade low in 2022-23 as people started spending after the restrictions on movement ended after the pandemic, the Reserve Bank of India said on Friday. Deputy Governor Michael Patra said the dip in net financial savings of households to 5.1 per cent of the Gross Domestic Product (GDP) in FY23 also includes an increase in liabilities, much of which are home loans that will show as investments in the next year. When asked if the decline in savings to a 47-year-low is indicative of over-leverage among the households, Patra reminded that historically, the average household savings rate was about 7.5 per cent but during the pandemic, it had gone up due to a variety of factors, including inability to spend due to the restrictions and also because of precaution savings. "as these movement restrictions were removed, people went out to spend and started to draw down those precaution savings. That is some of the phenomenon that we're seeing now,"

India's economic growth threatened as household savings hit 16-year low

Household financial assets, including bank deposits, cash and equity investments, after deducting debt servicing and consumption, eased to 5.1 per cent of gross domestic product

TMS Ep527: Akasa Air trouble, Twitter paywall, markets, household savings

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Planning before saving: How to get more from your income

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55% of retail credit used for housing, education, car buys in last 2 years

A low-interest rate regime in India during the pandemic resulted in a "paradigm shift" of households' savings from financial to physical assets.

'No distress', people investing in other fin products, says FinMin

The finance ministry on Thursday dismissed the criticism over the impact of declining household savings on the economy, saying people are investing in different financial products and "there is no distress". The statement posted on X by the ministry brushed aside critical voices raised with regard to the decadal fall in household savings and its overall effect on the economy. "Lately, critical voices have been raised w.r.t. to household savings and its overall effect on the economy. However, data indicates that changing consumer preference for different financial products is the real reason for the household savings and there is no distress as is being circulated in some circles," it said. Net household savings declined to a 47-year low of 5.1 per cent of gross domestic product in FY23 as compared to 7.2 per cent recorded in the previous year, as per the data released by the Reserve Bank in its latest monthly bulletin. At the same time, annual financial liabilities of households ro

Household savings fall to decades low, borrowing rises: RBI data

Annual financial liabilities of households increases by 5.8% of GDP

Budget and the growth process

The government's command over household savings needs to be reduced for stimulating demand and private credit

Mutual funds' share in household savings jump 150% in FY22: RBI data

Retail investments in MF rise as flows into bank deposits drop

BS Number Wise: India's savings don't help govt build a social safety net

India needs the other kind of saving now

Consumer sentiments improve

The improvement in sentiments during the early months of 2022 essentially reflects an increase in the proportion of households that believe that their current household incomes are better than they we

LIC largest holder of G-secs, equities, household savings: Report

The IPO-bound national insurer LIC is not only the largest holder of government debt -- owning 19 per cent of the G-secs -- but also the single largest owner of equities

A penny saved, a penny earned and other insights into the art of budgeting

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Japan households' inflation expectations rise: BOJ survey shows

The survey, which was conducted between Nov. 5 and Dec. 1, also showed more households expect prices to rise five years from now compared with the previous survey in September.

Japan's Nov household spending extends declines in sign of weak sentiment

Household spending fell 1.3% in November from a year earlier, government data showed, much weaker than the market forecast of a 1.6% gain in a Reuters poll.

Households have not recovered

Economic growth is supposed to deliver on these counts and not just on tax collections or freight movement or foreign trade

German household consumption down by 3% in 2020 due to Covid

German households lowered their monthly consumption expenditure in 2020 by three per cent as the Covid-19 pandemic "markedly affected" private spending, the Federal Statistical Office said

Household incomes better, caution prevails

Change in household income is one of the five components of the Index of Consumer Sentiments

Income of 97% household has decreased, says Priyanka Gandhi

Congress General Secretary Priyanka Gandhi on Friday launched a scathing attack on the Centre over the issue of inflation, saying the income of 97 per cent household has declined.

Households cautiously optimistic

The index of consumer sentiments scaled up by a handsome 7.9 per cent in September