Savings is seen as just a choice, but from a broader perspective it depends on factors such as inflation, regional peace and conflict, global pandemics, and overall regional economic stability. On November 27, 2023, Euronews reported that in 2022, households in the European Union saved about 12.7% of their disposable income, and households in the euro area saved 13.7%. These interest rates were still lower than in 2021, when the European Union’s savings rate was as high as 16.4%. The evolution of the savings rate from 2021 to 2022 can be attributed to the pandemic phase, when household incomes were stable and expenses were low due to the lockdown. Furthermore, uncertainty has also led households to increase their savings for inconvenient times.
Check out the 5 countries with the lowest savings rates in Europe.
5. Iceland
- Gross savings (% of GDP) (2022): 15.70D
- Real GDP growth rate (2024): 1.7D
Iceland ranks 5th on the list of countries with the lowest savings rates in Europe Ranked. According to a Bloomberg report on March 26, the country’s consumer prices rose to 6.8% in March from 6.6% in February. An increase in inflation leads to a decrease in savings. As a result, the country’s total savings were low. Iceland’s total savings to GDP in 2022 was her 15.70%.
4. Slovak Republic
- Gross savings (% of GDP) (2022): 15.49D
- Real GDP growth (2024): 2.1D
The Slovak Republic ranks 4th in the list of countries with the lowest savings rates in Europe It has been. The country recorded total savings of 15.49% of GDP in 2022. Furthermore, the Slovak Republic’s GDP growth rate in 2024 was measured at her 2.1%.
3. Cyprus
- Gross savings (% of GDP) (2022): 13.48D
- Real GDP growth rate (2024): 2.7D
Cyprus is one of the 15 countries with the lowest savings rate in Europe. The country’s savings rate has declined due to the conflict in the Middle East, and the total savings rate of GDP in 2022 will be 13.48%. Furthermore, the country’s GDP is expected to grow by 2.7% in 2024.
2. Greece
- Gross savings (% of GDP) (2022): 10.24D
- Real GDP growth rate (2024): 2.7D
44 Cyprus is one of the 15 countries with the lowest savings rate in Europe. The country’s savings rate has declined due to the conflict in the Middle East, and the total savings rate of GDP in 2022 will be 13.48%. Furthermore, the country’s GDP is expected to grow by 2.7% in 2024.
1. Moldova
- Gross savings rate (% of GDP) (2022): 10.02
- Real GDP growth rate (2024): 2.6D
Moldova’s savings rate is the lowest in Europe. The country recorded total savings of 10.02% of GDP in 2022. Although the country’s inflation rate is high, GDP is expected to grow by 2.6% in 2024.
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