Hungarian Households 12 Percent Wealthier Than Last Year

Hungarian households’ gross financial assets increased by 11.9 percent last year to 14.8 billion euros (6360 billion forints), but at the same time the growth rate of debt accelerated, expanding at a pace not seen since the 2008 economic crisis, according to the Allianz Global Wealth Report.

According to a summary, the global insurance company’s research analyzing the wealth and debt situation of households in 60 countries shows that

in Hungary net financial assets per capita were €18,060, putting Hungary in 29th place among the richest countries.

In all three asset classes – equities, bank deposits, insurance and pension fund assets – Hungarian savings increased significantly. The stock of insurance and pension fund assets rose by 7.8 percent last year, while bank deposits increased by 10.8 percent. The former accounted for 7 per cent of the household asset portfolio, the latter 28 per cent.

In parallel with the increase in household financial wealth, the growth rate of debt has accelerated, with an annual increase of 14 percent, the highest since the 2008-2009 economic crisis. However, the debt ratio (debt as a percentage of GDP) remained at a modest level of 25 percent, well below that of neighboring countries.

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