The private wealth of Germans has reached a new record high of 7.325 billion euros in the second quarter of 2021, with the main driver being the rise in stock prices. Despite the economic impact of the Covid-19 pandemic, the private wealth in Germany reached a record high of 6.630 billion euros in the second quarter of 2020, thanks to the highest savings rate since reunification. This trend has continued, according to the German Federal Bank (BBk), with private wealth reaching a new record high at the end of the second quarter of 2021. Economists at the BBk predict a further increase in private wealth in the coming quarter.
Private wealth includes cash, bank deposits, securities, and claims against insurance companies. In the second quarter of 2021, consumer spending increased significantly due to the easing of Covid-19 measures, resulting in a decrease in the savings rate, according to data from the Federal Statistical Office (Destatis). However, cash and bank deposits still account for the largest share of private wealth, with 2.910 billion euros, increasing by 52 billion euros in the second quarter of 2021. Furthermore, more and more Germans are investing in the stock market. “Liquid or perceived low-risk investment forms are still very popular overall, but the capital market engagement of private households has been increasing for years,” say the economists at the BBk.
In the second quarter of 2021, private households bought stocks worth seven billion euros and investment fund shares worth 24 billion euros. The gains in investment fund shares and stocks are also the main reason for the new record high in private wealth. Despite the economic impact of the pandemic, Germans are continuing to save and invest, resulting in a new record high in private wealth.
