CEE: Less savings than one thought

Analysis

Despite the beliefs, Central Europe is not a medium rich, emerging region but one of the poorest in the world, regarding personal income.

Per capita savings are even higher in South America and Asia, according to Wealth Management conference information. If the income rose in line with Western Europe, it would take several generations for the CEE people to accumulate the same wealth. Contrary to common opinions, most CEE countries rank in the global toplist as regards citizens’ financial equality: there are no more extremely rich or extremely poor people compared to the west.

Wealthy consumers in the region have comparatively less money and financial awareness; still, they expect higher quality services than the corresponding community in Western EU, according to Miklós Dietz, partner at McKinsey & Company. Through the increase of GDP per capita, the demand for financial services changes, and the availability of new types of services grew. 40% of the Hungarians investing into homeland funds wish to establish financial security, according to a research carried out by Raiffeisen.

The second most frequent reason (29%) is savings, creating surplus for old age, or for taking care of their children. Investment funds represent a way of saving which is more secure than stock shares (39%), and more modern than bank deposits (31%), Raiffeisen Capital Management CEE’s research concluded. (Gazdasági Rádió)

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