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Four-quarter household savings ratio drops to 5.9% of GDP

Telco

Hungaryʼs rolling four-quarter net household financial savings ratio slipped to 5.9% of GDP in 2018, show preliminary data published by the National Bank of Hungary (MNB) on Monday, as reported by state news agency MTI.   

The ratio fell after rising for five quarters in a row. The measure peaked at 8.0% of GDP at the end of 2015, before declining to 4.5% early in 2017.

In absolute terms, net savings transactions totalled HUF 2.5 trillion in 2018. In the fourth quarter alone, household savings transactions reached HUF 735 bln, equivalent to 6.3% of quarterly GDP. The unadjusted ratio rose from three months earlier, but fell in one year and on a quarterly basis if adjusted for seasonal effects.

Households added HUF 4.42 tln to their gross financial assets in 2018, bringing the total to HUF 53.788 tln. The assets surpassed annual GDP by 27%, MTI calculated.

Transactions added HUF 2.943 tln to the stock, while revaluations, the bulk of it on shares and stakes in non-financial companies, added HUF 1.472 tln.

Householdsʼ cash and deposits rose by HUF 1.815 tln, and their holdings of shares and stakes in companies increased HUF 1.635 tln, on a marked appreciation of HUF 1.487 tln.

At the end of last year, about 27% of gross household wealth was in cash and deposits, 11% was in government securities, 42% was in shares and stakes in companies and investment fund units, and 8% in life or pension insurance policies. The ratios hardly changed from the end of 2017. 

Liabilities of Hungarian households meanwhile rose by HUF 379 bln in 2018 to HUF 9.058 tln at the end of last year, acccording to the preliminary figures. Borrowing transactions reached HUF 443 bln, while revaluation added HUF 11.3 bln to liabilities, but other volume changes in 2018 reduced the stock by HUF 76 bln.

Some HUF 312 bln of the liabilities rise came from property loans. while debt on consumer loans rose by HUF 68 bln.

A second reading of fourth-quarter financial accounts data for 2018 will be published on April 1.

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