KOZ: Slovakia Still Lags in Household Financial Wealth Despite Statistical Gains

Bratislava, 30 November (TASR) – Slovakia has improved its position in average household financial wealth, yet it continues to lag behind other European countries due to low financial accumulation, high indebtedness and a limited ability to build liquid savings, economic analyst at the Confederation of Trade Unions (KOZ) Jan Kosc assessed on Sunday. Although the financial assets of Slovak households have increased statistically, their real purchasing power and capacity to ensure a higher standard of living remain limited. In 2023, the net financial assets of Slovak households reached €9,160, the lowest among European countries. Despite the relatively slow growth of net financial assets, Slovakia rose last year to €10,580. However, according to the analyst, this growth is nominal, with real appreciation weakened by high inflation, which ranked among the highest in the EU in 2024 and 2025. Slovakia is among the countries with the highest levels of indebtedness. The value of average debt per capita increased from €7,990 in 2019 to €10,960 in 2024, representing growth of 37.17 percent. Slovak households hold a higher share of debt (51 percent) than financial assets (49 percent), meaning they carry a greater credit burden than they can cover with their own financial wealth. According to the analyst, the common issue is not low financial literacy but a long-term policy of low wages. This has prevented many households from building systematic savings, and those able to save tend to keep money in banks as a buffer for unexpected expenses. The low financial wealth of Slovaks is not only the result of individual behaviour but also structural factors. In addition to low incomes, the long-standing absence of a comprehensive housing policy plays a key role. A lack of public and affordable housing forces households to tie a significant share of their resources into property, reducing their ability to save and invest. The state should therefore introduce comprehensive reforms in economic, tax and social policy – from supporting affordable housing and revising the tax and levy system to systematically increasing household incomes. "Contributing to this can be not only a new economic and industrial policy focused on higher value-added products and a new growth model, but also expanding collective bargaining coverage for employees. These changes and measures have enormous potential to spur new development in our economy and in the living standards of the population," Kosc added. mf