Households saved 13.8% of their disposable income in Quarter 4 (Q4) 2024, down from 14.8% in Q3 of the year.
Ireland’s household saving rate has averaged around 13.8% since the start of 2023.
While Irish households returned to the same levels of saving before the COVID-19 pandemic, households in many other European countries are now saving a higher proportion of their income than before the pandemic.
The Euro area (20 countries) saving rate for 2023 and 2024 is around 14.7%, up from 12.7% in 2018-2019
After adjustments for seasonal patterns, Irish household consumption and incomes both rose in Q4 2024, and the faster rise in consumption led to a lower saving rate during that time.
Household saving was 13.8% in Q4 2024, compared with 14.8% in Q3 2024 (current price seasonally adjusted). As Figure 1 shows, this is around the average level since the start of 2023. As the ratio depends on two larger aggregates (TDI and FCE), it is liable to change each quarter.
Household saving is added to wealth either as real assets (such as new homes), or financial assets (such as deposits), or as paying off liabilities (such as mortgage debt). In Q4 2024, before adjusting for seasonality or inflation, households saved €1.7bn. Investment in dwellings and improvements (most of which was by households) was €4.2bn. Additions to pension funds (D.8) were €1.1bn. Figures from the Central Bank of Ireland show that households' net deposits into banks in Ireland rose by €1.7bn over October, November and December (Q4) 2024. Loan liabilities of households to banks were up €1.4bn in the three months, meaning growth in deposit assets was largely counter-balanced by growth in loan liabilities. A detailed quarterly breakdown of changes in financial assets and liabilities will be published by the Central Bank and a revised saving estimate from the non-financial accounts will be published in the coming weeks.
Ireland's saving ratio in the latest quarter is around the same as its average over the eight quarters of 2023 and 2024. This is similar to its level in 2018-2019, before the COVID-19 pandemic restrictions caused it to rise above 30%. In other countries, such as Spain, France and Austria, the saving rate after the pandemic is notably higher than it was before. Figure 2 illustrates the averages for a selection of countries before and after the pandemic. While Ireland's rate is largely unchanged (13.8% now, 13.5% in 2018-2019), for the Euro area as a whole the rate is two percentage points higher now than pre-COVID-19 (14.7% up from 12.7%). So while Irish households used to be above the Euro area rate, they are now below it. Germany, the largest economy in the Euro area now has a saving rate of 19.6%, up from 18.0%.
| 2018-2019 average | 2023-2024 average | |
| Euro area | 12.72375 | 14.6685714285714 |
| Belgium | 11.49 | 13.8871428571429 |
| Denmark | 8.66375 | 9.92 |
| Germany | 17.96125 | 19.6471428571429 |
| Ireland | 13.5075 | 13.8472593483298 |
| Spain | 7.3375 | 12.7671428571429 |
| France | 13.8875 | 16.8985714285714 |
| Italy | 10.51 | 11.4571428571429 |
| Netherlands | 15.005 | 14.9142857142857 |
| Austria | 13.16125 | 16.3985714285714 |
| Portugal | 6.96 | 9.45857142857143 |
| Finland | 10.15125 | 10.86 |
Data in Figure 2 comes from Eurostat. Their direct seasonal adjustment approach for the saving rate differs from that used by the CSO. See the Background Notes for further information.
Household consumption was up slightly (+1.4%) in the final quarter of 2024 once seasonal and price factors were taken into account. Goods were up 0.2% while services were up 2.5% in volume consumed. In the consumer-facing sectors of the Services Index there was significant increase in the volume of services of Accommodation & Food (+8%). The Retail Sales Index seasonally adjusted volume was up overall (+1%), but the subsector of sales in Bars was up 8%. The figures are seasonally adjusted, and these large increases in consumption in bars and restaurants are in addition to the usual increases in activity before Christmas; they are also price adjusted, and show the volume of activity was up as well as price.
The Consumer Price Index (CPI) shows that prices for consumer goods and services at the end of the quarter (December 2024) were up 1.4% when compared with a year earlier (December 2023). The most significant increases in the 12 months to December 2024 were seen in Restaurants & Hotels (+3.7%) and Recreation & Culture (+3.3%). Prices were lower than 12 months previously for Clothing & Footwear (-8.0%) and Furnishings, Household Equipment & Routine Household Maintenance (-1.3%).
"Household Consumption" and "Individual Consumption Expenditure" in this release both mean Final Consumption Expenditure (FCE) of Households (code P.3 in the European System of Accounts). This is less than the item "Personal Consumption Expenditure" in the Quarterly National Accounts, which includes both FCE of households and Purchased Market Production funded by Social Transfers in Kind from Government (code D.632). Therefore the changes in household Individual Consumption Expenditure in this release differ from those reported in the Quarterly National Accounts.
FCE at constant prices is deflated based on price changes for households resident here, including expenditure by Irish residents when they go abroad, but excluding expenditure by foreign tourists here in Ireland. This differs from the Consumer Price Index (CPI), which excludes expenditure by Irish residents abroad and includes expenditure of foreign tourists within Ireland. While the CPI is discussed above for the insights it provides into certain parts of Individual Consumption Expenditure, it is not the same as the deflator used for FCE of Households.
Total Disposable Income (TDI) of households rose by 1% in the final quarter of 2024 compared with the third quarter; this is after adjustment for price and seasonal factors. Before adjustments, total household income in the quarter was €43bn. The changes in TDI before and after price and seasonal adjustment are shown in Figure 4.
The largest component of household income is Compensation of Employees (CoE): this made up €39bn of the €43bn TDI in the quarter. At current prices seasonally adjusted COE was higher compared with the third quarter of the year (+2.9% change). There was a small decline in the number employed but a small rise in average earnings. Figure 5 illustrates the differences in CoE by economic sector in the quarter compared to Q3 2024 after adjusting for seasonal factors. There was a significant rise in Information & Communications (+€279m or +7.7%), and the Professional, Scientific and Technical sector (+€207m or +3.9%). Changes were smaller in other sectors but all showed an increase in the quarter.
As well as wages, TDI also includes other income such as self-employed earnings, interest and dividends received and social benefits (such as Child Benefit), but is after deduction of income taxes, social contributions (such as PRSI) and interest paid. More detail will be published in the Institutional Sector Accounts release next month.
| sector | Change (Seasonally Adjusted) since Q3-2024 €m |
|---|---|
| Agriculture, Forestry and Fishing | 3.31308757011999 |
| Industry (excl. Construction) | 164.48386936532 |
| Construction | 48.80291328217 |
| Distribution, Transport, Hotels and Restaurants | 130.35484929551 |
| Information and Communication | 279.0632020926 |
| Financial and Insurance Activities | 90.2209994969198 |
| Real Estate Activities | 9.40212783321198 |
| Professional, Admin and Support Services | 206.79271930828 |
| Public Admin, Education and Health | 127.116372651399 |
| Arts, Entertainment and Other Services | 22.940980442899 |
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Statistician's Comment
The Central Statistics Office (CSO) has today (14 March 2025) released Household Saving Quarter 4 (Q4) 2024.
Commenting on the results, Peter Culhane, Statistician in the National Accounts Analysis & Globalisation Division, said: "Households saved 13.8% of their income in the last quarter of 2024 which is in keeping with the 2023 and 2024 average. This is added to their wealth in the form of buying new homes, growing bank deposits, pension saving, and paying off debt.
Looking at the average saving rate since the start of 2023, households save slightly less in Ireland (13.8%) than in the Euro area as a whole (14.7%). Saving rose sharply in Ireland during the COVID-19 pandemic in 2020 and 2021 and levelled off in 2022, but in Europe the saving rate has settled at a higher level than before the pandemic.
In 2018 and 2019 (the two years before COVID-19), the Euro area rate was two percentage points lower (12.7%) than the 2024 rate (14.7%). However, in Ireland, the 13.8% average rate in 2024 was similar to the rate of the pre-pandemic years (13.5%). As a comparison, Germany, which is the largest economy in Europe with the greatest number of household savers, had a saving rate of 19.6% in 2024, up from 18.0% in 2018-2019."