One Year In: A Look at Saving Rates During the Pandemic
While working hours were reduced across the globe and many lost their jobs entirely, personal saving rates actually increased throughout the pandemic in many countries.
A personal saving rate is calculated as the ratio of personal saving to disposable personal income. Here’s a look at the U.S.’ personal saving rate over 2020.
|Date||U.S. Savings Rate|
The U.S.’ personal saving rate skyrocketed in April to more than 30%. After a dip near the end of 2020, the rate has jumped back up again to around 20% in January 2021.
With the most recent data from September 2020, many European countries’ savings rates were up, as well—the highest rate occurred in the Netherlands at 24%. Japan and the UK followed a similar trend as well, at 22% and 28% respectively.
The Pandemic Piggy Bank
Personal saving rates tend to increase during recessions and, more generally, either increase because of reduced consumption or a boost in income.
Without the same access to restaurants, shopping, and travel, it is somewhat unsurprising that (Read more...)