Tuesday, May 5, 2015

We do not save and the little we have. Financial Resources Poles are … – GazetaPrawna.pl

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by Luke Wilkowicz 05/05/2015, 8:08; Update: 05/05/2015, 8:17

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Summary savings of households in Poland capture usually what is published in the monthly statistics – the value of bank deposits, cash and investments in investment funds and pension funds.

The accumulated equity of households in our country exceeds 1.6 billion zł – according to estimates from the Polish National Bank. This amount includes the most liquid savings, ie, cash or bank deposits, moreover money entrusted to financial institutions: investment funds or retirement (and the fact that last year was taken from the OPF to ZUS), and direct purchases of shares on the stock market or investment private equity.

The value of our savings is 93 percent. GDP. A lot? As it turns out – not at all. In Western Europe there is no lack of countries where assets of households (less than – real estate are not included here), more than twice the GDP. And even in our region are countries such as Hungary, where it is more than 115 per cent., Or the Czech Republic – more than 100 percent.

– Too low propensity to save is a big calamity of our economy – says Piotr Bielski, Bank Zachodni WBK economist. – That’s the main reason why for many years we had a large deficit on the current account, which we just had to import capital. And now would be a hindrance, if we wanted to dismantle large investment program.

– This is a serious problem in the medium and long term, while in the short term, the companies have large savings, because they earned thanks to the good performance of our economy – Margaret notes Starczewska-Krzysztoszek, chief economist of the Confederation Lewiatan.

Another bad news: last year’s increase in financial resources of Poles did not exceed 5 percent. It was the slowest since 2011.

According to these figures the Poles resources amount to little more than a trillion dollars. However, if you also consider investments in stocks and shares – both publicly traded and non-traded or savings in insurance companies, the value of our financial assets clearly on the rise.


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