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2024/06/18 / Erste Group Research

Time to spend or to save? Households‘ situation after inflation shock

In the current post-inflationary period, households within the CEE region are experiencing a resurgence in real income growth. This raises a question: will the additional disposable income be allocated towards increased consumption of goods and services, or will there be a propensity to rebuild the previously diminished savings? In our view, both outcomes are equally likely, yet there are noticeable divergences across the countries within the region.

From our perspective, households in Poland and Slovakia exhibit the strongest inclination towards savings, with Polish consumers additionally displaying a keen interest in making significant purchases. Conversely, Czech households find themselves in the least favorable position, having the slowest catch-up of real wages. The improvement of the financial circumstances of households is contributing to a revival in the real estate and mortgage markets. Nonetheless, it is important to note that for example Czechia and Slovakia are characterized by high levels of per capita indebtedness, which may constrain the potential for further debt accumulation.

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General information

AuthorErste Group Research
Product nameCEE Economies Special Report
Topic in focusFX, Macro/ Fixed income
Economy in focusCEE
Currency in focus-
Sector in focus-