Home / Business and Politics / Global financial assets increased by 9.7 percent last year, in Croatia by 5.3 percent

Global financial assets increased by 9.7 percent last year, in Croatia by 5.3 percent

Global financial assets increased by 9.7 percent last year and for the first time reached 200 trillion euros, while in Croatia they grew by 5.3 percent, according to the annual Allianz Global Wealth Report published on Thursday, which analyzes the assets and debts of households in nearly 60 countries.

Financial assets include cash and bank deposits, receivables from insurance companies and pension institutions, securities (stocks, bonds, and investment funds), and other receivables.

Although the global economy plunged into the largest recession since World War II last year, households managed to weather the pandemic-induced crisis with the help of monetary and fiscal policies that mobilized vast sums to support the economy. Savings were the main driver of household wealth increase, as it is noted that in the conditions of lockdowns that drastically reduced consumption opportunities, a global phenomenon of forced savings emerged, and savings jumped by 78 percent to a record 5.2 trillion euros.

Allianz expects the trend of increasing savings to continue, buoyed by the growing vaccination coverage, global GDP growth, loose monetary policies, and continued generous fiscal support.

Thus, 2021 is expected to be another good year for savers, with a total global growth of financial assets of about seven percent, forecasts Allianz.

Croatia: Financial assets growth of 5.3 percent

According to Allianz data, the gross financial assets of Croatian households increased by 5.3 percent during 2020, with bank deposits being the main driver, accounting for almost half of all financial assets. They grew by 7.2 percent, the largest increase since 2008.

Another significant driver of growth was the assets of insurance and pension funds, which increased by 8.3 percent, partly due to falling interest rates.

Securities, on the other hand, fell by 3.4 percent, which according to Allianz reflects the poor performance of the Croatian stock market and the fact that Croatian savers, compared to most neighboring countries, avoid investing in capital markets.

Net financial assets of Croatian households increased by 6.3 percent, and with net financial assets per capita of 12,510 euros, Croatia ranks 32nd on the list of the richest countries.

Thus, Croatia is the sixth richest country in the region, ranking below Slovenia (25), the Czech Republic (26), Estonia (27), Hungary (30), and Lithuania (31), but well above Bulgaria (35), Poland (37), Slovakia (38), and Romania (40).

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