Facebook Blogging

Edward Hugh has a lively and enjoyable Facebook community where he publishes frequent breaking news economics links and short updates. If you would like to receive these updates on a regular basis and join the debate please invite Edward as a friend by clicking the Facebook link at the top of the right sidebar.

Sunday, December 17, 2006

Savings In Hungary

One worrying feature of Hungarian society, people don't have too many accumulated savings to draw down as they age:

As many as 81% of Hungarians have no financial investment whatsoever and the majority of their existing investments are in short-term bank deposits, according to the latest market research of GFK Hungária Kft released on Friday.

A total of 40% of consumers surveyed said they were expecting to save significantly less next year and only 2% said they would be able to save significantly more. Around 31% expect to be able to save as much as before and 23% said savings would probably decrease slightly in the next 12 months.

1 comment:

Motyogo said...

I think this is down to three things mainly.
1) people are illiterate in the basics of economics. Consequently, they do not understand the options that are available.
2) the options that are available, even when they are understood, are not that great. The *gross* interest on most savings accounts, even if the funds are tied down for a year, is below inflation. And there are no tax-free savings and investment accounts for those on smaller incomes.
3) many people find it hard enough to finance daily survival, and simply do not have the means to save even if they were fully informed with great savings/investment options abounding.

Great blog btw!