Euro Area Economic and Financial Developments, Q2 2026

• Euro area net saving decreased to €868 billion in four quarters to second quarter of 2026, compared with €895 billion one quarter earlier
• Household debt-to-income ratio declined to 80.3% in second quarter of 2026 from 80.5% one year earlier
• NFCs' debt-to-GDP ratio (consolidated measure) decreased to 66.1% in second quarter of 2026 from 66.4% one year earlier

Total euro area economy

Euro area net saving decreased to €868 billion (6.7% of euro area net disposable income) in the four quarters to the second quarter of 2026 compared with €895 billion in the four quarters to the previous quarter. Euro area net non-financial investment declined to €599 billion (4.6% of euro area net disposable income), due to lower net investment by non-financial corporations (see Chart 1 and Table 1 in the Annex).

Euro area net lending to the rest of the world was broadly unchanged at €312 billion, reflecting net saving and net non-financial investment decreasing by similar amounts. Household net lending declined from €715 billion to €703 billion (5.4% of net disposable income). Net lending of NFCs increased from €103 billion to €127 billion (1.0% of net disposable income), and that of financial corporations grew from -€3 billion to €9 billion (0.1% of net disposable income). General government net borrowing increased, contributing more negatively (-€528 billion, ‑4.0% of net disposable income) to euro area net lending.

Chart 1

Euro area saving, investment and net lending to the rest of the world

(EUR billions, four-quarter sums)

Data for euro area saving, investment and net lending to the rest of the world (Chart 1)

Households

Household financial investment increased at a broadly unchanged annual rate of 2.7% in the second quarter of 2026, compared to the previous quarter, see Table 1 below. Investments in currency and deposits (2.4%, after 2.7%) and in shares and other equity (1.5%, after 1.8%) both grew at lower rates, while investment in debt securities increased at a higher rate (5.7%, after 4.0%). Investments in life insurance and pension schemes both grew at broadly unchanged rates (2.7% and 5.6%, respectively).

Households bought, in net terms, mainly debt securities issued by government, other financial institutions and the rest of the world (debt securities issued by non-residents of the euro area), while selling debt securities issued by non-financial corporations, MFIs, and insurance corporations (see Table 2.2 in the Annex). Households were overall net sellers of listed shares. By issuing sector, they were net sellers of listed shares of non-financial corporations, MFIs and the rest of the world, and net buyers of listed shares of other financial institutions and insurance corporations. Households also continued net purchases of both non-money market investment fund shares and money market fund shares.