Cypriot households are expected to increase their savings rate to 12.2 per cent of disposable income by 2026, up from 11.6 per cent in 2025 and 10.9 per cent in 2024, according to European Commission autumn forecasts.
The gradual increase marks a recovery from 2023’s rate of 9.9 per cent, though remains below the pandemic-era peak of 15 per cent recorded in 2021, when COVID-19 restrictions limited consumer spending.
The Commission’s data reveals significant variations across the eurozone. Germany leads with projected savings rates of 19.5 per cent in 2024, whilst Greece records the lowest at -0.2 per cent.
Other strong performers include Luxembourg (17.8 per cent), France (17.1 per cent), and Austria (17.1 per cent) for 2024.
Central Bank of Cyprus data supports the savings trend, showing resident household deposits reached €28.01 billion by September’s end, with total household deposits, including non-residents, at €31.61 billion.
The Commission noted that whilst European household disposable income grew healthily in the first half of the year, supported by employment growth and real wage recovery, households remained cautious about spending these gains, preferring to maintain savings.
