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The distribution and use of Italian households’ savings after the pandemic

Author

Listed:
  • Andrea Colabella

    (Bank of Italy)

  • Elisa Guglielminetti

    (Bank of Italy)

  • Concetta Rondinelli

    (Bank of Italy)

Abstract

The COVID-19 pandemic brought about an unexpected and significant drop in Italian household consumption, leading to a sharp increase in the propensity to save and the accumulation of substantial financial resources. In this paper, we quantify the resources saved during the pandemic and investigate their distribution across households. At the beginning of 2023, the accrued financial assets exceeded €130 billion; while all households, including the less affluent ones, managed to accumulate excess savings, the majority of these assets (more than 60 per cent) are held by the highest-income quintile. Looking ahead, households’ expectations point to an overall reduction in savings. Considering the distribution of financial assets and high-income households’ lower propensity to consume, the accumulated savings drawdown is likely to contribute marginally to the recovery in consumption. At the same time, the hefty increase in leisure-related expenses and the strong recovery in consumer credit could support consumption.

Suggested Citation

  • Andrea Colabella & Elisa Guglielminetti & Concetta Rondinelli, 2023. "The distribution and use of Italian households’ savings after the pandemic," Questioni di Economia e Finanza (Occasional Papers) 797, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_797_23
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2023-0797/QEF_797_23.pdf
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    References listed on IDEAS

    as
    1. Francois de Soyres & Dylan Moore & Julio L. Ortiz, 2023. "Accumulated Savings During the Pandemic: An International Comparison with Historical Perspective," FEDS Notes 2023-06-23-2, Board of Governors of the Federal Reserve System (U.S.).
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      More about this item

      Keywords

      consumption; Covid-19; financial assets; savings;
      All these keywords.

      JEL classification:

      • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
      • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
      • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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