Irish household net worth hits fresh record high of €1.1trn

The news that Irish household net worth hit a fresh record high of €1.1trn at end-2023 illustrates the enormous improvement in finances over the past fifteen years since the global financial crisis. Although the Irish household savings rate fell to 10.9% in 2023, households still accumulated €15bn of financial assets, with little evidence the pressure on real incomes from energy prices and elevated CPI inflation led to excess savings built up during the Covid19 period being unwound. Household debt now stands at 90% of disposable incomes, its lowest level since the turn of century and well below the UK ratio at 113%. That said, the lack of housing, holding back younger-age groups from becoming homeowners, (in addition to balance sheet repair) has accentuated the sharp decline in the household debt income ratio.

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Bank of Ireland Economics Weekly 3rd May 2024

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