In this article, we will look at the 15 countries with the lowest saving rates in Europe. If you want to skip our detailed analysis, you can go directly to the 5 Countries with the Lowest Saving Rates in Europe.

While saving can be considered a mere choice, in a broader perspective, it depends on factors including inflation, regional peace and conflict, global pandemics, and overall regional economic stability. On November 27, 2023, Euronews reported that households in the European Union saved approximately 12.7% of their disposable income, while those in the Euro area saved 13.7% in 2022. These rates were still lower than in 2021 when the savings rates were as high as 16.4% in the European Union. The transition in saving rates from 2021 to 2022 is attributed to the pandemic phase when the household income was stable, and expenditure was low due to the lockdown. Moreover, the uncertainty also led households to save more for adverse periods. To see the countries with the highest saving rates you can look at the 15 Countries with the Highest Savings Rate in the World.

The saving rates dropped in 2022 due to the shift towards the pre-pandemic era, with rising consumption rates. According to the latest figures from Eurostat, the household saving rate in the euro area went up to 14.6% in the fourth quarter of 2023, mainly due to the stabilizing economic situation in the region. However, the household investment rates in the euro area decreased by 0.1% during the same quarter. To find the best places to retire and save, look at the 20 Best U.S. Cities to Retire with $1 Million in Retirement Savings.

Economic Outlook of Europe

The economic situation in Europe is moderating; however, on the bright side, inflation rates are on a downward trajectory. According to the European Commission Winter 2024 report, the economy of the European Union and euro area grew by 0.5% in 2023. The growth expectations for 2024 have been revised to 0.9% in the European Union and 0.8% in the euro area. However, looking ahead to 2025, the growth projections are higher, with the European Union and euro area forecasted to grow at 1.7% and 1.5%, respectively. The revised growth projections are mainly due to the modest growth during the past two years because of the pandemic, decreasing household purchasing power, collapsing external demand, and ongoing regional conflicts. To read more about Europe, you can look at 20 Countries with Highest Income Tax Rates in Europe.

Headline inflation in the European Union is expected to decrease from 6.3% in 2023 to 3.0% in 2024, whereas for the euro area, it is expected to fall from 5.4% in 2023 to 2.7% in 2024. The fall in inflation is attributed to the sharp decrease in fuel prices, followed by the fast moderation of price pressure. The decrease in headline inflation also translates to an increase in average household savings.

Key Players Leading the European Economy

TotalEnergies SE (NYSE:TTE), Siemens Aktiengesellschaft (ETR:SIE), and Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) are some of the leading players in the European economy.

TotalEnergies SE (NYSE:TTE) is a global multi-energy oil-producing and marketing company based in Courbevoie, France. The company also engages itself in the production of natural gas, biofuels, green gas, and renewables. On April 3, TotalEnergies SE (NYSE:TTE) announced the launch of a new battery storage project in Belgium. The new project is expected to be developed on the TotalEnergies SE (NYSE:TTE) site in Feluy. The project will have a power rating of 25 M.W. and a capacity of 75 MWh and is expected to be functional by the end of 2025.

Siemens Aktiengesellschaft (ETR:SIE) is a leading technology company that provides technologies for industry, transportation, healthcare, and infrastructure. The company focuses on the automation and digitalization of Europe and the world. Headquartered in Berlin, Germany, the company employs around 320,000 people around the globe. On April 17, Siemens Aktiengesellschaft (ETR:SIE) announced the opening of its largest global research hub in Munich. With more than €100 million in investment, the new Siemens Technology Center will be the largest of the 12 central research hubs worldwide. Along with other fields, the center is expected to primarily focus on the research of industrial artificial intelligence to support Siemens Aktiengesellschaft’s (ETR:SIE) global position as an industrial innovator.

Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is a leading banking and financial services company based in Spain, valued at over $67 billion, as of April 27. The company provides retail banking, private banking, investment banking, asset management, and other related services. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) also offers savings accounts with services, including free-of-cost online accounts, saving goal accounts, and investment funds for its customers. Moreover, the bank has a diverse network of ATMs and online portals accessible around the globe for easy money transactions, and has over 115,000 employees, as of 2023. You can also take a look at the biggest Spanish companies.

With this context, let’s look at the 15 countries with the lowest saving rates in Europe.

Our Methodology

To curate the list of 15 countries with the lowest saving rates in Europe, we relied on gross savings as a percentage of GDP 2022 data from the World Bank. We shortlisted European countries from the data and ranked them in descending order of their gross savings as a percentage of GDP. Moreover, we have also mentioned the real GDP growth rates (2024) sourced from the IMF.

15 Countries with the Lowest Saving Rates in Europe

15. Bulgaria

Gross savings (% of GDP) (2022): 21.94%

Real GDP Growth Rate (2024): 2.7%

Bulgaria is a low-income country as compared to other European countries. Therefore, households have less disposable income to save. The country ranks 15th on our list with gross savings as a percentage of GDP of 21.94% in 2022. Moreover, the country has a GDP growth rate of 2.7% as of 2024.

14. Lithuania

Gross savings (% of GDP) (2022): 21.40%

Real GDP Growth Rate (2024): 2.2%

Lithuania is one of the 3 Baltic states in Europe. The country had a gross saving as a percentage of GDP of 21.40% in 2022. According to the IMF, the country has high-interest rates on lending and low interest rates on deposits, thereby hampering the disposable income of citizens. Moreover, a strong post-pandemic recovery has also raised inflation, resulting in lower savings rates for Lithuania.

13. Italy

Gross savings (% of GDP) (2022): 21.15%

Real GDP Growth Rate (2024): 0.7%

Although Italy has a lower inflation rate than other European nations, it still experienced a rise in inflation and ranks 13th on our list of countries with the lowest saving rates in Europe. On March 30, Euronews reported that Italy’s inflation rate rose 1.3% in March. The country had a gross saving as a percentage of GDP of 21.15% in 2022. Moreover, the country’s GDP grew at 0.7% in 2024.

12. Latvia

Gross savings (% of GDP) (2022): 21.09%

Real GDP Growth Rate (2024): 1.7% 

Latvia ranks 12th on our list of Countries with the lowest saving rates in Europe. It had a gross saving as a percentage of GDP of 21.09% in 2022. Moreover, the country’s GDP is growing at 1.7% in 2024.

11. Aruba

Gross savings (% of GDP) (2022): 20.89%

Real GDP Growth Rate (2024): 1.1%

Aruba ranks 11th on our list of countries with the lowest saving rates in Europe. The country has inflation rates, leading to lower gross saving rates as a percentage of GDP of 20.89% in 2022. Moreover, the country’s GDP growth rate was 1.1% as of 2024.

10. Poland

Gross savings (% of GDP) (2022): 19.58%

Real GDP Growth Rate (2024): 3.1%

Poland is a central European country that ranks 10th on our list. The country had gross saving rates as a percentage of GDP of 19.58% in 2022. Moreover, Poland has a GDP growth rate of 3.1% as of 2024.

9. Portugal

Gross savings (% of GDP) (2022): 19.05%

Real GDP Growth Rate (2024): 1.7%

According to the IMF, the savings rates for Portugal are low due to the high dependency on elderly people and the large spending on pensions and social protection schemes. Therefore, the country ranks 9th on our list of countries with the lowest saving rates in Europe.

8. Luxembourg

Gross savings (% of GDP) (2022): 18.53%

Real GDP Growth Rate (2024): 1.3%

Luxembourg ranks 8th on our list of countries with the lowest saving rates in Europe. It had a gross saving as a percentage of GDP of 18.53% in 2022. Moreover, Luxembourg’s GDP growth rate in 2024 was 1.3%.

7. Ukraine

Gross savings (% of GDP) (2022): 16.82%

Real GDP Growth Rate (2024): 3.2%

The inflation rates in Ukraine have been high. On January 10, Reuters reported that the inflation rates in Ukraine grew by 5.1% year on year in December 2023, leading to low gross saving rates. Moreover, The country has a GDP growth rate of 3.2% as of 2024 and ranks 7th on our list of countries with the lowest saving rates in Europe.

6. United Kingdom

Gross savings (% of GDP) (2022): 16.73%

Real GDP Growth Rate (2024): 0.5%

The United Kingdom ranks 6th on our list of countries with the lowest saving rates in Europe. The country faces the challenge of low saving rates mainly due to the low-interest rates on savings accounts. The country had a gross saving as a percentage of GDP of 16.73% in 2022. Moreover the country’s GDP is growing at 0.5% in 2024.

Click here to see the 5 Countries with the Lowest Saving Rates in Europe.

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Disclosure: None. 15 Countries with the Lowest Saving Rates in Europe is originally published on Insider Monkey.