Additional spending from built-up savings in the last year could inject €5bn into the Irish economy once the pandemic recovery gets underway, according to new Central Bank research. The potential spending boost would be equivalent to adding five percentage points to aggregate consumption – similar to the estimated spending released from maturing Special Saving Incentive Accounts (SSIAs) in the mid-2000s. "In this instance, research suggests that roughly half of these savings may be spent or consumed, which would suggest a boost to domestic demand." The top 30pc of earners have 50pc of the savings and spend more than the average on personal care, going out and culture. Spending on these categories is about 50pc of all spending across income groups.

Source: Irish Independent March 30, 2021 15:45 UTC