börsenboom, rising interest rates, high savings rate: according to a study, private financial assets in Germany grew last year. DZ Bank announced on Tuesday that it had increased by a good six percent to 7.9 trillion euros. In 2022, private financial assets had shrunk by almost five percent.
“Share price gains ensured an increase in value of around 200 billion euros in 2023,” said analyst Michael Stappel from DZ Bank. The German stock index DAX alone rose by around 20 percent last year. At the end of the year, stocks and investment funds made up a good 23 percent of households' financial assets with more than 1.8 trillion euros.
“A continued high savings rate also ensured that financial assets grew,” says the study. At 11.2 percent, the value is still above the pre-Corona average, which is “due to a persistently uncertain environment”. The interest rates, which rose sharply and exceptionally quickly, also provided an incentive to save. However, due to strong inflation, these would still have been in negative territory in real terms.
“The prospects for investments remain good overall in 2024,” say the DZ Bank analysts, looking ahead. “This is mainly due to the inflation rate likely to continue to fall.” With wages rising at the same time, private households could expect real increases in their income. This in turn stimulates consumption and contributes to the gradual economic recovery in Germany.
The upturn in other parts of the world is likely to support price developments on the stock markets. In addition, time deposits, savings certificates and bonds could further benefit from the reduction in savings parked in current accounts. “As a result, households’ interest income is growing and positive real returns can increasingly be achieved with fixed-interest investments,” says the study. As uncertainty subsides and the inflation rate continues to fall, the savings rate should also fall slightly. “All in all, wealth creation is likely to slow down in 2024,” it concluded. The financial assets of private households in Germany will therefore increase by a good four percent in 2024.
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