Skopje, 21 September 2022

With the post-pandemic recovery of the economy, which contributed to labor market stabilization and increased disposable income, household risks remained contained, with a slight decrease during 2021. At the same time, the financial assets of Macedonian households recorded nominal growth last year, the highest in the last ten years. The total financial assets of households, which, besides deposits in banks, also includes other forms of savings and financial investment (such as investment in domestic and foreign securities, investment in pension funds, investment funds and in life insurance, cash in circulation, etc.), as of the end of 2021, amounts to Denar 498 billion, which is an annual increase of about Denar 43 billion or 9.3%. Moreover, in 2021, households preferred less risky investments, primarily in deposits with banks and in private pension funds. This conclusion is drawn from the 2021 Financial Stability Report, which was recently reviewed and adopted by the National Bank Council. 

Total financial assets of households to GDP in 2021 was 68.8%, which is slightly more than twice as high as their total debt. Household debt grew by 8.9% during 2021, compared to 7.9% in 2020, which is still less than the nominal GDP growth. Thus, the household debt rate remained at a relatively stable level of around 30% of GDP, which is still not high. Solvency and liquidity ratios of households point to a relatively limited systemic vulnerability of this sector. However, households may be sensitive to environmental risks, which due to the war in Ukraine are pronounced in this period.

For more information on household sector developments, see the 2021 Financial Stability Report of the National Bank.