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Low Interest Rates are Costing Every Austrian 2,366 Euro
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Due to the ongoing low interest rate environment, Austrian savers had to forego around EUR 35.5 billion in interest income over the past five years (2010-2014). On average this amounts to approx. 4,156 euro per capita. Of this, interest earned on deposits alone on average amounted to EUR 24 billion less than in the years 2005 – 2009. Anyone who invested his money in residential real estate has reason to be pleased, as prices have risen by more than a third since 2009. On stock exchanges significantly larger gains could be achieved as well, but only 3.3% of Austrians are directly invested in equities.
Low Interest Rates are costing every Austrian 2,366 euro / Picture: © Erste Group Bank AG
If one looks at credit, interest payments on loans were around EUR 15.3 bn. lower than in the time period 2005-2009.
This is equivalent to savings of 1,790 euro per capita.
“If one offsets the interest foregone on savings against the interest expense saved on loans, the result is a loss in the amount of 2,366 euro per Austrian citizen”, explains Thomas Uher, CEO of…
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