Households around the globe have accumulated $5.4 trillion in additional savings compared with 2019’s spending patterns, Moody’s has said. That equates to more than 6% of global gross domestic product.
According to the rating agency, booming global consumer confidence suggests people will be willing to spend again as soon as shops, bars and restaurants reopen when coronavirus restrictions are eased.
“The combination of an unleashing of significant pent-up demand and overflowing excess saving will drive a surge in consumer spending across the globe as countries approach herd immunity and open up,” said Mark Zandi, chief economist at Moody’s Analytics.
The agency estimates that if consumers spend about a third of their excess savings, they will boost global output by just over two percentage points both this year and next.