Mon. Apr 22nd, 2019

The wealth of the families decreases by 2.9% in the fourth quarter of 2018, but continues in pre-crisis figures

The wealth of the families decreases by 2.9% in the fourth quarter of 2018, but continues in pre-crisis figures

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The net financial wealth of Spanish families and non-profit institutions at the service of households (NPISH) has been located in 1,370 billion euros in the fourth quarter of 2018, which is 2.9% less in the interannual rate, according to the Financial Accounts published by the Bank of Spain on Monday.

In relation to GDP, the statistics of the supervisory body reflects that net financial assets represented 113.4%, ratio which is 7.6 percentage points lower than that of a year earlier.

In this way, the wealth of households continues to be maintainedabove the levels prior to the economic crisis, since in the first half of 2007, just before the beginning of the recession, it was around one trillion euros, although in the fourth quarter it has decreased compared to the previous quarters.

The majority of assets in cash and deposits

Net financial assets of households and NPISHs have reached the end of 2018 the 2.15 billion euros, 1.6% lower to those of a year earlier, due to a net acquisition of financial assets of 22,000 million euros last year and negative net revaluations of 57,000 million euros, mainly due to the fall in the price of variable income assets.

With respect to GDP, the total financial assets of households and NPISHs have represented a 178.1% at the end of the fourth quarter of 2018, which means 9.3 percentage points less than a year earlier.

By components, the bulk of the financial assets of households was in cash and deposits (41% of the total), followed by equity holdings (25%), insurance and pension funds (17%) and holdings in investment funds (14%).

Cash and deposits were the component that most increased their weight in financial assets of households (+ 1.7%) with respect to a year earlier, while the weight of shareholdings in capital was the one that fell the most (-2.3%).

The debt of households and companies falls

Meanwhile, the consolidated debt of companies and households and NPISH has reached 1.16 trillion euros at the end of 2018, 133.4% of GDP, 5.7 percentage points below the ratio recorded a year earlier. The consolidated debt of non-financial corporations has represented 74.5% of GDP (if inter-company debt was included, the ratio would be 93.2%), while for households and NPISH it was 58.9%.

During 2018, the net flow of consolidated financing received by businesses and households and ISFLSH has been 8,200 million, which represented 0.7% of GDP, 0.3 percentage points more than a year earlier. In addition, the new financing captured by theas non-financial corporations has constituted 0.5% of GDP, while that received by households and NPISH was 0.2%.

Finally, the net financial operations of the resident sectors (companies, households, financial institutions and public administrations) have registered, in 2018, a surplus of 18,000 million euros, equivalent to 1.5% of GDP, compared to 2.2% observed in the whole of 2017 In particular, they have obtained a positive balance of companies (1.3% of GDP), financial institutions (2.7%) and households (0.1%), while public administrations showed a deficit of 2.6% of GDP.


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