Irish household savings rate picks up sharply in early 2024

New CSO data this week showed the Irish household savings ratio rose sharply to 14.7% in Q1 2024. This is one of the highest levels for the household savings ratio on record, only surpassed twice in the past 25 years, during the Covid19 pandemic and briefly in 2009,following the global financial crisis. These were both periods in which consumer spending was clearly depressed. However, Irish consumer spending posted a solid 0.6% gain in Q1 2024,despite the rise in household savings. One factor at play may be the boost from Budget 2024,the tax cuts effective from January 1st worth 2% of disposable incomes close to the average wage. Elevated savings are also evident in the €1.8bn of bank deposits Irish households have accumulated in the first four months of 2024, rising to a fresh high of €154.5bn.

Please download the document in full below.

Bank of Ireland Economics Weekly 14th June 2024