Household sector sees higher savings in 2021: central bank
Skopje, 21 September 2022 (MIA) – With the post-pandemic recovery of the economy contributing to stabilize the labor market and the growth of disposable income, risks in the "household" sector remained within controlled limits, observing a slight decrease during 2021, the National Bank said in a press release.
According to the central bank, the financial assets of Macedonian households recorded nominal growth last year, the highest in the past ten years.
The total financial assets of households, which in addition to deposits in banks also include other forms of savings and financial investment of households (such as investments in domestic and foreign securities, pension funds, investment funds and life insurance, ready money in circulation, etc.), as until the end of 2021, amount to Mden 498 billion and recorded growth on an annual basis by about Mden 43 billion, i.e. by 9.3 percent. In addition, during 2021, households tend towards less risky investments, primarily in deposits with banks and in private pension funds. This conclusion comes from the 2021 Financial Stability Report, which was recently reviewed and adopted by the Council of the National Bank.
The share of total financial assets of households in GDP in 2021 is 68.8 percent and is slightly more than twice as high as their total debt. Household debt grew by 8.9 percent in 2021, compared to 7.9 percent in 2020, which is still less than nominal GDP growth. Thus, the household indebtedness rate remained at a relatively stable level of around 30 percent of GDP, which is still not a high level of indebtedness. The indicators for the solvency and liquidity position of households for now point to a relatively limited systemic vulnerability of this sector. However, households may be sensitive to risks which are highlighted during this period due to the war in Ukraine.
More information on movements in the household sector are available at https://www.nbrm.mk/ns-newsarticle-izvestaj-za-finansiskata-stabilnost-vo-republika-severna-makedonija-vo-2021-godina.nspx.
