The Commonwealth Bank of Australia (CBA) estimates that households’ savings increased by about $120 billion between April and December 2020, with travel and social activities being restricted by the COVID-19 pandemic.
Gareth Aird from the CBA expects consumers to spend some of the accrued savings in 2021 and beyond, which will boost economic activity. Aird suggests that some of this money is likely to be used to pay down debt, or invest in housing or the sharemarket. He adds that an important factor in the economic recovery will be how much of this money is spent on domestic goods and services.
From The Australian: