Household saving rates across the European Union are projected to stabilise in 2025 after recent volatility driven by economic uncertainty, according to the European Commission’s Spring 2025 Economic Forecast.

The forecast highlights varied national trajectories, with countries like Cyprus, Portugal, and the Netherlands expected to see increases, while others, such as the United Kingdom and Greece, are forecast to experience declines or stagnation.

For Cyprus, the household saving rate is projected to rise to 11 per cent in 2025 from 10 per cent in 2024, continuing a steady upward trend after the country recorded a low of just 3.4 per cent in the 2011–2015 period.

This increase signals improving economic confidence and income stability among Cypriot households.

Germany, historically among the strongest savers in Europe, is forecast to maintain high household saving rates at 20 per cent in 2025, slightly down from 20.1 per cent in 2024.

France is expected to hold steady at 17 per cent, while the euro area average is predicted to be 15.3 per cent.

In contrast, Greece is set to continue its trend of negative household saving, with a rate of -2.5 per cent in 2025.

This reflects ongoing economic challenges, despite some signs of broader recovery. Similarly, Bulgaria is forecast at -3.2 per cent in 2025, though this marks an improvement from -4.9 per cent the previous year.

Among the top performers, Austria and the Netherlands are each forecast to see their saving rates climb to 18 per cent and 15.8 per cent respectively in 2025, underpinned by strong labour markets and robust financial systems.

Finland is also expected to see a meaningful increase, from 9.6 per cent in 2024 to 10.7 per cent in 2025, while Italy is forecast to remain stable at 11.8 per cent.

Portugal, rebounding from pandemic-era lows, is forecast to rise to 13.5 per cent in 2025, up from 12.9 per cent in 2024.

The report also shows notable growth in saving rates in Central and Eastern Europe.

Hungary is projected at 17.4 per cent in 2025, continuing an upward trend from 15.4 per cent in 2023. Poland and Romania are both forecast to rise as well, reaching 6.6 per cent and 12 per cent respectively.

On the other hand, the United Kingdom’s household saving rate is expected to decline to 9.8 per cent in 2025 from 10.2 per cent in 2024.

The United States is also projected to drop slightly to 10 per cent in 2025, following a peak of 11 per cent in 2024.

The data is compiled from 2006 to projections through 2026, and reflects five-year historical averages as well as annual forecasts.

While many EU countries show signs of stabilisation or growth, the figures also underscore persistent disparities in household financial behaviour and resilience across the bloc.

The commission noted that the household saving rate is a critical economic indicator, often linked to consumer confidence, disposable income levels, and macroeconomic stability.

Rising saving rates may signal stronger financial security but can also indicate cautious consumer spending, which may weigh on short-term growth.