Savings ratio rises to 7.3% of GDP in Q1

MNB

Net financial savings of Hungarian households reached HUF 495 billion in nominal terms in the first quarter of 2017, or 7.3% of the period's GDP, the National Bank of Hungary (MNB) said in a first reading of financial account data on Monday.

The savings ratio was up from 7.0% in the traditionally strong Q4, and was the highest ratio since a 8.6% figure recorded in Q4 2011.

The two strong quarters brought net financial savings in the four quarters ending in Q1 2014 to HUF 1,682 billion, and pushed the four-quarter saving ratio to 5.7% of GDP, up from 5.3% both in 2013 and in the four-quarter period one year earlier.

The four-quarter ratio was the highest ratio mesured since 2000.

The rise from one year earlier was actually less as the Q1 2013 four-quarter saving ratio was 5.5% of GDP if adjusted for the effects of government schemes encouraging private pension fund members to move to the state pension pillar, first in 2011 and, to a lesser extent, in 2012, and allowing borrowers with foreign currency-denominated mortgages to repay their loans early, in full, at discounted exchange rates between the autumn of 2011 and the spring of 2012.

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