IMF Staff Country Reports

Spain: Selected Issues

Publication Date:

August 2, 2013

Electronic Access:

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Summary:

This Selected Issues paper analyzes household savings ratio in Spain. The household savings ratio has fallen to its lowest historical rate in 2012, as households cut back savings to support consumption in response to negative income shocks. Household savings fell across all households, but the declines were likely more material among lower income and highly indebted groups. Declining household income and savings slowed deleveraging and put household balance sheets under pressure. Looking ahead, households may need to restrain consumption further to free resources for repaying debt. Household savings rates will likely stay below historical levels for some time then slowly increase.

Series:

Country Report No. 2013/245

Subject:

Disposable income Expenditure Financial sector policy and analysis Fiscal law Fiscal policy National accounts Pension spending Personal income Solvency