In Latvia, one of the lowest levels of household savings (savings as a part of income that is not spent) in Europe is only 4.9%, according to "Eurostat" data for 2024.
In Estonia, this figure reaches 7.3%, in Lithuania - 7.6%. The average figure for the European Union is 14.4%, and the highest is in Germany - 20%.
"At the same time, Latvian households have gradually increased their savings since 2014. As in other European countries, the peak of savings formation occurred during the pandemic, especially in 2020. However, by 2022, likely influenced by the rapid rise in prices, the savings rate sharply declined, dropping in Latvia to the level of 2015. Only in 2024 did this figure begin to rise again. In Europe, there are several countries where the savings rate did not significantly decrease after the pandemic or even increased, such as Denmark, the Czech Republic, Austria, Sweden, and Portugal. This is likely explained by the economic slowdown and the associated pessimism of the population," said Liva Zorgenfreya, the bank's chief economist.
The bank analyzes several indicators that reflect the presence of savings. One of the main ones is the amount of deposits at the end of the month for the average client receiving a salary in their account, that is, the median deposit. This is the amount of funds that the client has in their accounts and can access in a short time, including term deposits, but not, for example, third-pillar pension savings. Overall, the median deposit has increased since 2018. However, from 2021 to 2023, the deposit amount for clients with an average salary remained virtually unchanged - at about 500-600 euros. However, starting in 2024, it began to rise again, and now the median deposit for the average client is approximately 800 euros.
The total volume of household deposits in banks continues to increase year by year, and in recent years, the growth rate has become even higher. Data from the Bank of Latvia shows that by the end of 2025, the volume of household deposits will reach 12.1 billion euros, increasing by 8.2% over the year. However, these funds are distributed unevenly: the majority of savings are concentrated among a relatively small part of society.
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