he savings of Spanish households maintained their upward trend during the second half of 2024, with a growth of 1.1% in the third quarter, which places the savings rate at 14.2% of gross disposable income, according to the latest report published by the Bank of Spain (BdE).
This increase reflects a change in the consumption habits of Spanish families, especially among higher-income households and those living in rented accommodation. Faced with the rising cost of living, these groups have opted to contain their spending and allocate more of their income to savings, which explains the upturn recorded in recent months.
Less pressure on the most vulnerable households
Despite the rise in the cost of essential goods and services, the BdE data also reflect a slight improvement in the economic situation of the most vulnerable households. The percentage of households spending more than 70% of their income on basic expenses, such as food, supplies and housing, fell to 15.2% in 2024. This figure represents a decrease of one point compared to the average recorded since 2014, indicating that, although difficulties persist, the financial pressure on the most exposed households has moderated slightly.
The Bank of Spain’s report highlights that, despite inflation, many households have managed to adjust their budgets to cope with price increases, avoiding further indebtedness. However, this prudent behavior has also had consequences for the economy, as the reduced willingness to consume may slow growth in trade and other sectors dependent on household spending.
What to expect in the coming months?
The behavior of savings and consumption in the coming months will depend to a large extent on the evolution of prices and the economic policies adopted to mitigate the effects of inflation. Factors such as the evolution of interest rates, the cost of energy and the stability of the labor market will play a key role in the ability of households to maintain or increase their level of savings.
In this context, it is essential to continue monitoring the economic situation of Spanish families, especially those with less capacity to adjust to rising prices. The consolidation of a balanced economic recovery will depend on finding a middle ground between encouraging consumption and the need to maintain financial stability in households.
