Germany's savings rate rose to its highest level in 14 years in the first half of 2008 as uncertainty about the economic outlook grew. Households in Europe's largest economy put aside 11.3 percent of disposable income in the first six months, adjusted for seasonal swings, the Federal Statistics Office said on Tuesday. The rate was 10.9 percent in the second half of 2007.
The average German saved 1,080 euros ($1,351) during the first half of 2008 - 80 euros more than in the same period in 2007. In total, Germans squirreled away some 89 billion euros in the January-June period, the stats office said. The proportion of household savings set aside in Germany has risen almost continuously since 2000, and has now reached its highest rate since 1994, official data show.
According to European Union statistics, Germany's savings rate is the highest among the bloc's biggest economies, comfortably ahead of Britain, France, Italy and Spain. The flipside to the German prudence is that, amid concern over welfare cuts and a declining population, consumer spending in the country has been sluggish for years. However, because private consumption has been lacklustre, a number of economists say it may prove less prone to fluctuation, and thus be a relative anchor of stability for the economy.
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