The Bank of Lithuania claims that Lithuanians saved billions of euros during the pandemic

Lithuanian residents saved 6.2 billion during the two-year coronavirus pandemic. euros – they did not spend that much money even with the rapid growth of inflation and the decrease of purchasing power, the Bank of Lithuania (LB) announced on Friday. They invested almost three-quarters of this amount in financial assets, and one-fifth in other assets.

“A comparison of the population’s consumption and income development during and after the pandemic with the trends before the pandemic shows that in 2020-2021, Lithuanian residents accumulated 6.2 billion. EUR of additional savings”, said Darius Imbrasas, Chief Economist of LB’s Macroeconomics and Forecasting Department, in the report.

According to him, the indicator showing the share of income households do not spend on consumption was three to five times higher than the historical average in 2020-2021.

In 1995-2019, the population did not consume a little more than 3 percent on average, in 2020 – up to 14.5 percent, and in 2021 – 10.9 percent. earned income. Only in 2022, when the economy experienced new challenges again, the indicator decreased to 4.8 percent.

According to the LB representative, the majority of additional savings accumulated during the pandemic were allocated by residents to purchase financial assets.

“The performed analysis shows that during the first years of the pandemic, Lithuanian households accumulated most of the additional savings they received as cash and deposits or invested them in financial assets,” said D. Imbrasas.

According to him, almost three quarters of the 6.2 billion EUR of additional savings were invested in financial assets, a fifth – in non-financial assets.