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Non Financial and Financial Institutional Sector Accounts 2012

 

 

Household saving ratio falls in 2012

 

According to a report released today by the Central Statistics Office, Irish households generated gross saving of €8.8bn in 2012 down from €9.8bn in 2011.

 

This information is contained in Institutional Sector Accounts – Non-financial and Financial, 2012, which brings together comprehensive information on the economic activities of households, businesses – both financial and non-financial – and the government sector. The report also links relevant financial and non-financial information for each of the sectors.

 

Expressing household saving as a proportion of the gross disposable income of households the derived saving ratio fell from 11.2 per cent in 2011 to 10.2 per cent in 2012. The saving ratio of EU households fell from 11.1 per cent to 10.9 per cent during the same period.

 

Household saving continued to be used primarily to pay down debt in 2012 but was also used to fund the substantially lower levels of investment in property without recourse to borrowing.

 

Non-financial corporations investing more

 

Investment by companies in the non-financial sector increased from €7.7bn in 2011 to €8.9bn in 2012. Expressed as a percentage of the value added of the sector the derived investment rate rose from 8.8 per cent to 10 per cent between 2011 and 2012. This is the first time since 2005 that the investment rate of the non-financial corporations has increased. The profitability of the sector showed a small improvement increasing from €48.4bn in 2011 to €48.9bn in 2012. However, this is largely explained by the activities of multinational corporations operating in Ireland whose profits accrue to their foreign owners.

 

Banking business declining

 

Balance sheets of financial corporations continue to decrease in size. This is particularly notable in relation to monetary financial institutions (i.e. mainly banks). The assets of the banking sector which reached a peak of €1,864.5bn in 2008 fell to €1,304.8bn in 2012. The corresponding liabilities declined from €1,870.3bn to €1,310.3bn over the same period.

 

Continued deterioration in Government finances

 

In 2012 the deficit on current government expenditure amounted to €9.2bn and taken together with investment in the year of €3.4bn this explains the net borrowing of government of €12.2bn. Government continued to rely on direct loans to finance its expenditure in 2012. Its consolidated liabilities increased from €168.9bn in 2011 to €209.6bn in 2012. As a result the debt/GDP ratio increased from 99 per cent in 2011 to 123 per cent in 2012.

 

For copies of the publication:

 

To view and download the publication, visit the CSO website at: Institutional Sector Accounts Non-Financial and Financial 2012 (PDF 1,133KB)

 

Further information

 

The data tables contained in the present report as well as for earlier years can be downloaded from Database Direct on the CSO Website.

Non-Financial Accounts:

http://cso.ie/shorturl.aspx/91

Financial Accounts:

http://cso.ie/shorturl.aspx/92

 

For further information contact:

 

National Accounts,

Central Statistics Office,

Ardee Road,

Dublin 6,

Phone: LoCall 1890 313 414

021 453 5000 / 01 498 4000

Website http://www.cso.ie/

E-mail Nat_Acc@cso.ie

 

Non-Financial Accounts: contact Michael Connolly (01 498 4006) or Mary Brew (01 498 4365)  

Financial Accounts: contact Derek Stynes (01 498 4303)

 

Central Statistics Office                                                        3 October 2013

– ENDS –