Cypriots have lowest household savings rate in EU

Cyprus ranked bottom among 28 EU countries for household savings in 2016, according to Eurostat.

The study which investigated changes in European consumer behaviour, showed that an average household in Cyprus spends 2% more than its annual income.

While in 2006, an average Cypriot household deposited 11.6% of a family’s annual income, in 2016 the percentage had reversed to a negative -2%.

However, this rate is higher than the years 2014-2015, when Cypriots deposited -6.3% and -5% of their annual income, respectively.

It is worth mentioning that in 2000 the savings rate of the country’s households was as high as 7.3% but it started declining after the global financial crisis in 2008 and reached -1.8% in 2013.

The average savings rate for all EU countries has remained relatively stable between 2000-2016, with families depositing 11%-13% of their annual income.

Luxembourgers held the highest place in Eurostat’s study as its citizens saved 20% of their annual earnings.

The other places in the top five were held by Sweden (19%), Germany (17.5%), France (13.5%), Austria (13.4%).