Cypriot households will save a growing share of their income over the next three years, with the savings rate climbing to 9.1% by 2027 from 5.6% this year, European Commission forecasts show.
The household savings rate will reach 7.3% in 2025 and 8.3% in 2026 before hitting 9.1% the following year, according to the Commission’s autumn economic forecasts. The rate stood at 6.3% in 2021 before dropping to 5.6% in 2022 and holding steady around 5.6-5.7% through 2024.
Household consumption will slow as real wage growth eases, but investment should strengthen as Recovery and Resilience Plan projects finish in 2026, the Commission said.
Greece records the eurozone’s lowest savings rate by far, reflecting incomes too low to set aside, according to Commission estimates.
Greek households are expected to save just 1.8% of disposable income in 2027, up from a negative 2.1% in 2025 and a barely positive 0.1% in 2026. The rate was negative 2.5% in both 2023 and 2024.
Germany leads the eurozone with a 19.6% savings rate forecast for 2025, dropping slightly to 18.9% by 2027. France, the bloc’s second-largest economy, will see household savings of 18.7% in 2025, falling to 18% by 2027.
Belgium’s savings rate will hold at 12.4-12.5% through 2027, whilst Austria’s will ease from 16.5% in 2025 to 16% in 2027. Spain’s rate will hover around 12.4-12.6% and Italy’s between 11.8% and 12.2% over the three-year period.
Among Baltic states, Estonia’s savings rate will climb from 7.3% in 2024 to 8.2% in 2026 before easing to 7.9% in 2027. Lithuania will save 10% in 2025, dropping to 8.1% in 2026 before recovering to 9.6% in 2027. Latvia’s rate will reach 7% in 2026 from 4.9% in 2024.
Ireland will maintain a 13.4% savings rate through 2026, Portugal’s will decline from 12.4% to 11.1% between 2025 and 2027, and the Netherlands will save 18.2-18.3% over the period.
Eurozone net savings reached €861 billion, or 7% of net disposable income, in the 12 months to the second quarter of 2025, up from €857 billion a quarter earlier, the European Central Bank said. Net non-financial investment strengthened to €545 billion as companies boosted spending.
Households increased their contribution with net savings of €597 billion, whilst companies reduced theirs to €99 billion. The public deficit narrowed to €442 billion, or 3.6% of net income.
Household financial investments grew at an annual rate of 2.6%, up from 2.4% the previous quarter, with increases in shares and equity stakes, life insurance and pension schemes. Bond holdings fell 1.2% whilst deposits held steady at 3%.
Europe’s growing private credit market and increasing financial system interconnection could widen transmission channels during broader economic stress, Fitch Ratings warned in a new report.
European private credit assets under management are expected to double to nearly €1 trillion by 2030, according to Pregin data cited by Fitch.
The private credit market in Europe is expanding but remains smaller than North America’s, with lower penetration in corporate lending as banks still dominate credit intermediation, Fitch said.
Rising private credit from institutional and private investors, along with expanding partnerships with investment managers, has led to tighter supervisory rules.
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