Consumers around the world have also saved an additional $ 5.4tn since the coronavirus epidemic began and have become more self-reliant in economic growth, creating a way to make more money once businesses have reopened.
Families around the world found more and more – so-called extra money compared to spending in 2019 and more than 6% of global spending – by the end of the first quarter of this year, according to Moody’s credit bureau.
And global consumer confidence indicates that consumers will be prepared to spend more money on how retail shops, bars and restaurants will reopen once the barriers to the spread of the virus are removed. In the first half of this year the Conference Board’s global trust has risen sharply since the beginning of history in 2005, with a significant increase in all regions of the world.
Mark Zandi, an economist at Moody’s Analytics, said: “Combining growing jobs and saving more money will boost global consumer spending as countries begin to protect security.”
If consumers spend about a third of their savings they could increase global output by more than 2 percent annually and next year, Moody says.
Although the global economy last year is the worst in modern history, household incomes have been protected by unprecedented government systems in the developing world. Consumers also reduce costs by monitoring high operational and financial uncertainty, as well as because many support businesses are closed or banned.
As a result, by 2020 inflation rates in many emerging businesses have skyrocketed in the last century, according to the OECD, and bank deposits have grown rapidly in many countries.
Zandi said over-saving was especially important in developed countries, especially in North America and Europe where turmoil has occurred and government spending has been high.
In the US alone, families have saved more than $ 2tn in extra income, Moody says. Earlier in the day, the giant transferred President Joe Biden’s $ 1.9tn promotional program. All in all it is enough to help “use the splurge”, says Krishna Guha, an economist at Evercore ISI’s financial banking adviser.
Silvia Ardagna, an economist at Barclays, hopes to “speed up family spending this year” in the US and “Little” in the UK, although he warned that “a smaller vaccine could mean that any demand will not be met in the euro” in the next two phases.
A number of countries in the Middle East where government assistance has been more generous also have higher incomes, while in Asia, higher incomes were lower compared to other areas such as the epidemic and the impact on family planning is less pronounced.
In South America and Eastern Europe finances fell sharply due to the sudden outbreak of the epidemic and government subsidies.
However, the severity of the epidemic has varied greatly and money has been saved by wealthy families everywhere.
Morning Consult’s consumer confidence strategy showed a steady shift between January and April over the 15 big economy but a large proportion of low-income households say financial reports have worsened compared to a year ago.
More than a third of the wealthy families in many countries, including China, Australia, Italy, Russia and the US, say this was a good time to buy big things, but not so for poor families, the Morning Consult showed.
Jan Hatzius, an economist at Goldman Sachs, estimates that about two-thirds of all US dollars were saved by 40% of the world’s population and that this could slow down economic growth because “wealthy families” [rather than spend] more money ”.
Adam Slater, an economist at Oxford Economics, said: “If more money is saved by wealthy families and this is seen as a growing economy rather than an extra income, we can expect very little income. [additional] waste of money. ”
About a quarter of UK households have reiterated their savings to continue keeping them in their bank accounts, according to the Bank of England. Others plan to use their money to pay off debts, put in their savings or increase their pensions.
This is in line with what the Board did which showed a two-fold increase in consumer prices which increased the revenue and shares in the first quarter of 2021 compared to the same period last year.