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Low Interest Rates are Costing Every Austrian 2,366 Euro
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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