Croats increased household savings

Croats increased household savings

Along with economy recovery and the increase in employment rates and average salary, personal savings have significantly increased in the past year. Total household savings, according to Croatian National Bank, at the end of 2018 accounted for 200,5 billion HRK.

That represents the increase of 8,2 billion HRK in 2018, which is 4,2 percent, much more than in the previous years. According to the private banks, the trend had been expected having in mind the increase of the total household income and another good tourist season.

Despite the very low interest rates, it seems that Croats do have savings habits. However, the preference has changed in the favor of a'vista accounts, rather than term deposits.

Free household deposits used for daily payments have risen from 33,9 to 42,8 billion HRK – they doubled over the period of just 4 years. At the same time, non-term deposits in foreign currency have increased as well, from 38,2 to 50,3 billion HRK.

As current interest rates seem to be rather unattractive to Croats, they rather keep the money in open accounts while awaiting for the good investment opportunity. This is the reason why many of them appeared in the role of property buyers on domestic market, primarily in income-generating properties in touristic hot spots.   

Author

Ivo Perkovic

Holding master's degree in finance, I commenced my real estate career in 2006. Ever since, I have worked for several reputable real estate agencies - as an agent, sales manager and senior consultant. I am a licensed agent and graduate valuer, proficient in English and experienced in Croatian real estate market, primarily in residential estates.

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