{"id":43273,"date":"2024-08-16T09:30:00","date_gmt":"2024-08-16T07:30:00","guid":{"rendered":"https:\/\/frankfurt-main-finance.com\/?p=43273"},"modified":"2024-08-20T13:30:47","modified_gmt":"2024-08-20T11:30:47","slug":"financial-investment-and-external-financing-in-germany-in-q1-2024","status":"publish","type":"post","link":"https:\/\/frankfurt-main-finance.com\/en\/financial-investment-and-external-financing-in-germany-in-q1-2024\/","title":{"rendered":"Financial investment and external financing in Germany in Q1 2024"},"content":{"rendered":"\t\t
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Households\u2019 financial assets close to \u20ac8 trillion mark<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Households’ financial assets rose by \u20ac216 billion in the first quarter of 2024 and stood at \u20ac7,946 billion at the end of the quarter. This increase was partly attributable to transactions having reached their highest level since the first quarter of 2022 (\u20ac87 billion). Much like in the previous quarter, there were strong movements in deposits, in particular. Funds were again withdrawn from lower-interest-bearing sight deposits (down \u20ac33 billion in the reporting quarter) and replaced by higher-yielding time deposits. The latter recorded the largest growth within a quarter since the time series began in 1991. In terms of other instruments, households exercised restraint on the whole. They still bought debt securities worth as much as \u20ac9 billion, as well as shares and other equity worth just \u20ac2 billion. Listed shares issued in Germany were sold and shares from foreign issuers were purchased. By contrast, the momentum in investment fund shares was stronger: households bought shares worth \u20ac14 billion net. While net purchases of this instrument did not match the highs recorded in 2021, they are still well above the growth seen in recent quarters.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In the first quarter of 2024, households achieved significant valuation gains, totalling \u20ac129 billion. The main contributors to these gains were listed shares (up by \u20ac42 billion) and investment fund shares (up by \u20ac61 billion). Insurance and pension claims also rose in value by \u20ac19 billion.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Real total return on financial assets rose further<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The real total return, i.e. adjusted for inflation, on households\u2019 financial assets represents the actual return on financial assets for households. Its computation is based on the period-specific asset structure. The real total return stood at 1.4% in the first quarter of 2024. This was a continuation of the upward trend in the real total return observed since the end of 2022. While the positive contributions of debt securities and shares to the real total return remained almost constant compared with the previous quarter, the other instruments all contributed to the sharp rise in the real return. Nonetheless, the individual instruments currency and deposits as well as insurance and pension claims still both yielded a negative real return. As in the previous quarters, the real total return was significantly above the short-term real interest rate.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Households\u2019 liabilities remained unchanged<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Households\u2019 liabilities moved sideways in the first quarter of 2024, totalling \u20ac2,156 billion at the end of the quarter. As in the previous quarters, the muted growth in liabilities reflected the weak growth in loans for house purchase. The debt ratio declined by 0.5 percentage point to 51.8%. The fall in the debt ratio despite rising liabilities is attributable to the nominal increase in gross domestic product.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Net financial assets rose again<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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According to the financial accounts, households\u2019 combined net financial assets increased by \u20ac214 billion to \u20ac5,790 billion in the first quarter of 2024. The Distributional Wealth Accounts (DWA) recently launched by the Bundesbank provide additional data on the distribution of households\u2019 wealth. These data show that wealth inequality is fairly high in Germany. According to the DWA, the wealthiest 10% of households hold more than 70% of net wealth, while the less wealthy half of all households hold just under 1% of net wealth.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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External financing of non-financial corporations similar to previous quarter<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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At \u20ac47 billion, the external financing of non-financial corporations was similar to the previous quarter. Borrowing picked up again and reached \u20ac25 billion. Especially net borrowing from banks was significantly positive again, reaching \u20ac11 billion at last report after two negative quarters. At \u20ac16 billion, issuance of shares and other equity was also more dynamic than in the previous year as a whole.<\/p>

In annual terms (four-quarter moving sums), following the substantial decline between mid-2022 and mid-2023, a slight increase in the external financing of non-financial corporations was thus observed for the second quarter in a row.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The liabilities of non-financial corporations grew by \u20ac179 billion, standing at \u20ac8,292 billion at the end of the first quarter of 2024. This growth is again mainly attributable to the increase in the value of the equity issued (+\u20ac151 billion). The debt ratio saw a minimal fall, from 77.4% to 77.5%.<\/p>

The financial assets of non-financial corporations rose by \u20ac117 billion, thus reaching \u20ac6,227 billion at the end of the quarter under review. Taken together, non-financial corporations\u2019 net financial assets were down to -\u20ac2,065 billion.<\/p>

Owing to interim data revisions of the financial accounts and national accounts, the figures contained in this press release are not directly comparable with those shown in earlier press releases.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Source: Deutsche Bundesbank, Press release 18th of July 2024<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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According to the Deutsche Bundesbank, the net financial assets of households in Germany continued to increase, driven by valuation gains and a real return of 1.4% in the first quarter. At the same time, corporate financing increased slightly, which also led to an increase in liabilities.<\/p>\n<\/div>","protected":false},"author":7,"featured_media":43274,"comment_status":"closed","ping_status":"open","sticky":false,"template":"template-fullwidth.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[200,105],"tags":[],"class_list":["post-43273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-member","category-top-news"],"acf":[],"publishpress_future_action":{"enabled":false,"date":"2026-05-16 12:41:03","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category","extraData":[]},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/posts\/43273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/comments?post=43273"}],"version-history":[{"count":4,"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/posts\/43273\/revisions"}],"predecessor-version":[{"id":43951,"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/posts\/43273\/revisions\/43951"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/media\/43274"}],"wp:attachment":[{"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/media?parent=43273"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/categories?post=43273"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/frankfurt-main-finance.com\/en\/wp-json\/wp\/v2\/tags?post=43273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}