Savings continue to grow annually in April but further growth questionable

Savings have been increasing annually since the end of 2011 and the continuation of the positive annual growth of total bank deposits in April 2020 is first and foremost a result of deposit money growth.

At the end of April 2020, deposit money went up 1 percent on the month to 109.2 billion kuna, accounting for 35 percent of the total deposits. The annual increase was 19.3 percent, by 17.6 billion kuna. 

Raiffeisen Bank analysts say this is a result of low interest rates on time deposits.

Savings and time deposits in the domestic and foreign currencies dropped on the month in April but continued to increase annually, by 7.6 billion kuna (+3.9 percent), to 202.1 billion kuna.

A likely decrease in disposal income and difficulties in the real sector could slow down the growth of bank deposits, analysts say, yet they still expect the strongest growth of deposit money owing to low interest rates, the high inclination to keep liquid funds and the disinclination to invest in other financial assets.

(€1 = 7.57 kuna)