Economics
Consumers Saved $2.9 Trillion During the Pandemic. Their Money Will Drive the Global Recovery
- Bloomberg estimates U.S. has $1.5 trillion in extra savings
- Whether savings are run down will determine recovery speed
This article is for subscribers only.
Consumers in the world’s largest economies amassed $2.9 trillion in extra savings during Covid-related lockdowns, a vast cash hoard that creates the potential for a powerful recovery from the pandemic recession.
Households in the U.S., China, U.K., Japan and the biggest euro-area nations socked money away when forced by the coronavirus to stay home and out of the shops, according to estimates by Bloomberg Economics. They are likely continuing to do so as restrictions remain and governments dole out stimulus.