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Yesterday’s national accounts release from the Australian Bureau of Statistics (ABS) revealed that households continue to accumulate an immense savings war chest on the back of record government stimulus.
While the household savings rate fell to 12.0% from a record 22.0% in the June quarter of 2020, it remained at elevated levels, as illustrated in the next chart.
Australia’s household savings ratio has fallen 10% over the past two quarters, but remains at high levels.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.