Does saving money grow or slow down the economy in Italy?

Savings by Italians have been analyzed as a driver of economic growth, but also as a loss of opportunities if excessive.

What happened

Italians are known for their financial prudence, but excessive caution can lead to a loss of purchasing power. According to a study by Fabiwealth in current accounts at the end of 2023 was 1,153 billion euros, down 3.6% compared to 2022.

The region with the greatest liquidity is Lombardy with 235 billion euros, followed by Lazio and Veneto. Only Sardinia and Basilicata recorded an increase in liquidity in 2023.

There Fabi also found that the returns offered by liquidity vary significantly between Italian regions. The national average interest rate for a current account of up to 50,000 euros is 0.21%, highlighting the limits of this choice in a context of growing inflation.

According to Assogestioni-Censis report, 76.7% of Italians manage to save, but many save only 5% of their annual income. Economic uncertainty has led many to prefer domestic investments, such as Btpthanks to high yields.

Finally, mutual funds sold in Italy have among the highest costs in Europe, with annual commissions on equities of around 2%. Current account costs have also increased, with an average annual cost of 104 euros in 2023.

Because it is important

The savings situation in Italy is crucial to understanding the economic dynamics of the country. The financial prudence of Italians, although positive in terms of stability, can represent an obstacle to economic growth if it is not balanced with productive investments.

The 3.6% decline in wealth in current accounts in 2023, as detected by the Fabi, indicates a worrying trend that could reflect a reduction in the spending capacity of Italian families. This is particularly relevant in a context of rising inflation, where purchasing power is put to the test.

The preference for national investments such as BTPs, highlighted by the Assogestioni-Censis Report, shows a response to the volatility of global markets and the search for safe returns. However, the high costs of mutual funds and current accounts represent a further obstacle for Italian savers, limiting their investment options.

In summary, savings management in Italy is a topic of great importance, with significant implications for the national economy and for the well-being of Italian families.

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