Allianz Research

Volle Kraft voraus:
Global Wealth Report 2025

The economics of war, (and its aftermath)

Between the end of World War II in May 1945 and Russia’s attack on Ukraine in February 2022, Europe has enjoyed an exceptionally long period of peace on its soil: 77 years. 

Old lessons for a new world

Over the last decade, zero interest rates in Europe did not hold back growth in private households’ financial assets, particularly in Germany (+5.2%). However, the growth drivers were quite different between countries: Whereas German households relied on fresh savings (mainly out of earned income), most other countries benefited from value gains (i.e. the rising prices of securities).

House of cards? Perspectives on European housing

Tightening financing conditions, slowing growth and soaring inflation are putting pressure on the European housing market. Swiftly rising mortgage rates have dramatically reduced home affordability at a time when home prices have already reached unsustainable levels in many European countries.