Analysis: Czechs Most Frugal Nation in EU, Slovaks Have Problem with Saving

Bratislava, 2 August (TASR) - Saving is a problem for Slovaks, and, according to Eurostat data, they are managing to save only 7.2 percent of their gross incomes, while the EU average is 13.2 percent, Patrik Kindl, an analyst at Finax, has stated. The Czechs, meanwhile, lead all EU countries in this respect, managing to save 19.4 percent in the same period. According to the analysis, Slovaks have almost a third less money available for consumption than the European average, which makes it difficult for them to save. If the average Slovak earned €10,000 per year, he or she saved only €720, while Czechs were able to save up to €1,940. Significant differences in behaviour occurred during the pandemic. While before the pandemic Slovaks were able to save more on average, after the pandemic (between 2019-2023) the rate of saving in the Czech Republic increased by 7.5 percent, while in Slovakia it decreased by 2.6 percent. According to the analysis, the differences in household behaviour in the Czech Republic and Slovakia after the pandemic may be due to different economic policies, economic conditions and household behaviour. Effective fiscal measures and higher interest rates in the Czech Republic have boosted savings growth, while in Slovakia less effective policies and increased household spending have led to a decline in savings. The analyst pointed out that the ability to save is also being hampered by lower incomes. Slovakia is at the tail end of the EU in terms of how much money is left after taxes and levies are deducted. People have 30.7 percent less money to spend or save than the EU average, with only Lithuania worse off. This factor also limits their ability to save. am/df/mf