A newly published analysis by UniCredit Group CEE found households in Central and Eastern Europe (CEE) have continued to improve their standards of living.
Financial wealth of CEE households rose to EUR 583bn in 2006, while investment in one’s home is becoming a primary objective of households in CEE, the analysis found.
In 2006, financial assets held by CEE households continued to increase, posting double-digit growth for the third year in a row to reach EUR 583 billion, or 57 percent of GDP. That is a result of the solid performance of CEE economies, a strong asset price rally and sustained accumulation of funds in pension schemes.
Now, the CEE region accounts for roughly 1 percent of global wealth, expected to have topped EUR 81 trillion in 2006.
“Households in CEE are adapting their consumption habits to new and improved standards of living,” says Debora Revoltella, CEE Chief Economist of UniCredit Group. “At the same time, they are increasingly investing in their home. Consumption in the region is marked by fast income growth and improved access to the credit market, which in turn is also supported by a wealth effect arising from fast growth of house prices.”