The pandemic has continued to leave many people in better financial shape, despite the tough hits to jobs and closed businesses.
he latest update from the Central Bank shows that gross household savings continued to rise, up â¬ 1.5 billion in the first three months of this year, to stand at 7, 4 billion euros.
Average household wealth has also been bolstered by the continued rise in house prices during the pandemic, something central banks and other experts did not anticipate when much of the economy was frozen.
The combination of savings and rising house prices pushed the combined wealth of Irish households to a high of 883 billion euros in the first three months of the year.
This brought the average “wealth” to â¬ 177,493 per capita, although the Central Bank points out that an unprecedented level of personal wealth has not been experienced by many people with Covid, noting that “the experiences underlying individual households may vary â.
This is especially the case for people whose real income has been reduced and tenants. In total, households saw a pay cut of 2.5 billion euros in the first three months of this year compared to the same period in 2020.
The state intervened, however, with households earning a total of 3.9 billion euros in social transfers (PUP) and subsidies (EWSS). Savings rates were also boosted by the lack of spending opportunities, which resulted in a drop in consumption of 2.9 billion euros, a significant portion of which was also spent on reducing consumption. the debt.
In net terms, income support, lower debt and lower spending combined to make households better, on average, during the quarter.