Recent figures published by the German Bundesbank show that gross financial assets held by private households in Germany dropped by 3.1% in 2008. According to these figures, gross financial assets in 2008 stood at EUR 4.41 trillion compared with EUR 4.55 trillion in 2007. Although private households saved much more in 2008 than the previous year – the savings rate rose from 10.8% to 11.5% – the total amount invested net in financial assets (EUR 120 billion) could not compensate for the losses in value of EUR 259 billion.
Germany: Fall in financial assets of private households
On balance, financial assets fell by EUR 139 billion in 2008 which was the second fall in financial wealth of private households in the history of the Federal Republic of Germany. This fall was even sharper than the one after the New Economy bubble burst. In 2002, financial assets were just under 1% lower than at the end of 2001.