Euro area households and non-financial corporations: fourth quarter 2021

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April 5, 2022

  • Household financial investments increased with an annual growth rate of 3.3% in the fourth quarter of 2021, after 3.9% in the third quarter of 2021
  • Financing of non-financial corporations increased at a higher annual rate of 3.4% (after 2.7%)
  • The gross operating surplus of non-financial corporations increased at a lower annual rate of 7.5% (after 8.9%)

Figure 1. Household financing and financial and non-financial investments

(annual growth rates)

Figure 2. Gross operating surplus of NFCs, non-financial investment and financing

(annual growth rates)

Households

The annual growth rate of household gross disposable income remained broadly unchanged at 3.4% in the fourth quarter of 2021. Gross operating surplus and mixed income of the self-employed increased at a higher rate of 7.1% (after 4.4%), while the remuneration of the workforce increased at an unchanged rate of 5.8%. Household consumption expenditure increased at a higher rate of 10.1% (after 5.8%).

The gross household savings rate stood at 17.3% in the fourth quarter of 2021, compared to 18.6% in the previous quarter (calculated from sums over four quarters).

The annual growth rate of household gross non-financial investment (which mainly refers to housing) increased to 19.1% in the fourth quarter of 2021, from 17.9% in the previous quarter. Loans to households, the main component of household financing, increased at an unchanged rate of 4.0%.

The annual growth rate of household financial investments fell to 3.3% in the fourth quarter of 2021, after 3.9% in the previous quarter. Among its components, currency and deposits grew at a slower pace of 5.0% (after 6.2%). Stocks and other equity rose at an unchanged rate of 3.1%, and investment in life insurance and pensions rose at a broadly unchanged rate of 2.2%.

Household net worth increased at a lower annual rate of 7.0% in the fourth quarter of 2021 (after 7.3% in the previous quarter), mainly due to a slower increase in financial assets. The continued growth in net worth was driven primarily by strong valuation gains in non-financial assets, followed by financial investments and valuation gains in financial assets. Real estate wealth, the main component of non-financial assets, increased at a higher rate of 7.3% (after 7.0%). The household debt-to-income ratio fell from 96.3% in the fourth quarter of 2020 to 96.8% in the fourth quarter of 2021.

Non-financial corporations

NFC net value added increased at a higher annual rate of 9.0% (after 8.5%) in the fourth quarter of 2021. Gross operating surplus increased at a lower rate of 7.5% in the fourth quarter of 2021, following 8.9% in the fourth quarter of 2021. quarter, while net property income (defined in this context as property income receivable less interest and rent payable) increased. As a result, gross business income (roughly equivalent to cash flow) increased at a higher rate of 11.3% (after 8.5%).[1]

Gross non-financial investment by NFCs increased at a higher annual rate of 16.5% (compared to 14.4% in the previous quarter).[2] The financial investments of NFCs increased at a higher rate of 5.7% (after 5.0%). Investments in cash and deposits, loans, shares and other equity as well as other financial assets (mainly trade credit) increased at higher rates, while net sales of debt securities continued.

NFC financing increased at a higher annual rate of 3.4% (after 2.7% in the previous quarter), loan financing growth rates (4.3% after 3.4)[3], debt securities (4.2% after 2.0%) and trade loans and advances (14.6% after 10.0%) increased. Equity financing of NFCs grew at an unchanged rate of 1.4%.

The debt-to-GDP ratio of NFCs (consolidated measure) decreased to 79.6% in the fourth quarter of 2021, from 81.8% in the same quarter of the previous year; the broader, unconsolidated measure of debt fell to 143.7% of GDP (from 144.7%).


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Remarks

  • The annual growth rate of non-financial transactions and the stock of assets and liabilities (stocks) is calculated as the percentage change between the value of a given quarter and that recorded four quarters earlier. The annual growth rates used for financial transactions refer to the total value of transactions during the year compared to the outstanding amount of the previous year.
  • The hyperlinks in the main body of the statistical publication are dynamic. The data they lead to may therefore change in subsequent releases of data as a result of revisions. The figures presented in the tables in the appendix are a snapshot of the data at the time of current publication.
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