Dáil Éireann Debate, Thursday - 22 June 2023
218. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which savings in the various financial institutions have fluctuated over the past ten years; and if he will make a statement on the matter. [30447/23]
View answerDespite facing numerous economic headwinds over the past ten years, households have continued to grow their stock of deposits. According to Central Bank data, the outstanding stock of household deposits in financial institutions rose by 65 per cent between April 2013 and April 2023.
The onset of the pandemic brought about a notable uptick in deposits, as public health restrictions limited contact intensive expenditure. The CSO estimates that household savings as a proportion of disposable income, the household savings rate, rose sharply to well over 20 per cent throughout the pandemic.
Since the easing of pandemic related restrictions, savings patterns have gradually begun to return to more normal levels. In the first quarter of this year, the household savings rate stood at 13.7 per cent, a rate comparable to pre-pandemic levels. That being said, household deposits continue to grow at a robust pace over recent months, reflecting the strength of the labour market at present with more people at work than ever before.
Households continue to retain substantial savings accumulated over the past ten years and in particular during the pandemic. This has placed households on a strong financial footing, and may support strong consumption growth or investment in the years ahead.
