The Bank of Spain has updated its particular x-ray on business and household finances. The controller highlights in the publication of the financial accounts an increase in the “portfolio” of families, whose total financial assets exceed 3,000 billion euros after revaluation of 5.6%. This increase reflects a revaluation of 86 billion euros and a net acquisition of financial assets of 77 billion euros compared to June last year. The financial accounts reflect a reduction in corporate and household debt, down 7.3 points, to 110.4% of GDP.
What do households save on? He The majority of household financial assets were held in cash and deposits (35.8% of the total)followed by capital shares (31%), investment fund shares (15.6%) and insurance and pension funds (12%). In fact, families have directed their savings mainly towards bank deposits before the drop in remuneration which will occur at the same time as the drop in interest rates.
It was a happy new year for the stock market which was reflected in family savings despite inflation and rates: the revaluation of assets was largely concentrated on shares of investment and capital funds. In terms of net acquisition, investments in investment funds stand out, in addition to bank deposits. The increase in financial assets of these sectors was lower than that of GDP, so that in relation to this variable the ratio was reduced by 2.6 points, to 197.9% of GDP in the second quarter.
THE net financial wealth households and non-profit institutions, which is obtained deduct your debts from your financial assetsamounted to 2.29 billion euros at the end of last June, which represents an increase of 7.9% compared to a year earlier. Net financial assets represented 148.7% of GDP, 1.2 points more than a year earlier.
Debt of businesses and families
THE debt non-financial businesses and non-profit households and institutions amounted to 1.7 billion euros at the end of the second quarterwhich represents an increase of 0.4% compared to the same quarter of the previous year, which responds exclusively to the increase in corporate debt.
This variable moderate to 110.4% of GDP, compared to 117.7% of GDP in the second quarter of 2023according to the financial accounts of the Spanish economy published this Wednesday by the Bank of Spain.
The consolidated debt of non-financial companies increased in the second quarter to slightly exceed 1 trillion euros, compared to 990.6 billion in the second quarter of 2023, although it decreased in terms of GDP to 65%, compared to 68.7% in June 2023. Including the inter-company debt, the percentage of debt to GDP would be 81.3% (86.6% a year earlier).
Faced with the increase in absolute value of corporate debt, households reduced their debt in the second quarter from 707.7 billion euros in June 2023 to 700.5 billion in June 2024. The GDP ratio also moderated , going from 49.1% to 45.4%. This is the lowest level in the entire century which hides lower mortgage debt.
