Money - Euro

The world’s consumers stockpiled an extra $5.4 trillion (€4.5 trillion) of savings since the COVID pandemic began, setting the stage for a strong rebound in consumer spending as businesses reopen, according to Moody’s credit rating agency.

Reflecting an equally dramatic decrease in consumer spending, this figure, defined as additional savings compared with spending data for 2019, equates to more than six per cent of global GDP.

According to Mark Zandi, chief economist at Moody’s analytical arm, this could see a market boom as “significant pent-up demand” is released in tandem with “overflowing excess saving”. 

If consumers spent about a third of their excess savings they would boost global output by over two per cent in 2020 and 2021, he predicts.

More locally, data provided by the European Union’s statistics agency Eurostat has shown that when nations in the EU were released from COVID lockdowns at the end of the second quarter, consumer spending erupted.

Notably, the data indicates that the decline in household spending far outstripped a decline in household income over Q2. Similarly, in Q3, increases in spending were dramatically higher than increases in income.

During the third quarter, savings rates in the EU decreased by 7.3 per cent, as consumption per capita increased by 11.4 per cent.

Related

Poundland bought for £1 in rescue deal as thousands of UK jobs on the line 

June 17, 2025
by Sam Vassallo

Poundland has more than 800 stores around the UK and employs some 16,000 people

Corinthia expands Beverly Hills footprint with third property acquisition and new US partnership

June 12, 2025
by Lyndsey Grima

The partnership secured rights to acquire a third prime property; an office block adjacent to the Maison and Mosaic Hotels

EU adds Monaco and Venezuela to money laundering blacklist

June 12, 2025
by Lyndsey Grima

The United Arab Emirates and Gibraltar were removed from the list