MOSCOW, January 19 The volume of “excess” savings is declining around the world, especially in developed economies — now it has dropped to almost zero, although earlier was at the level of 10%, said the head of the European Central Bank (ECB), Christine Lagarde.
«When we look at the amount of savings around the world, there was an abundance of it. This «excess» savings, especially in developed economies, is declining: from 10% of «excess» savings we went to almost zero. If we accept «Considering these two factors, the labor market situation and the decline in savings, it becomes clear that consumption is no longer as strong a driver as it used to be,» she said during a speech at the World Economic Forum in Davos.
At the same time, she noted positive trends in world trade after a slowdown in the previous two years. “In October, world trade figures went up for the first time in many months. Another positive factor is that all over the world, excluding the euro area, all over the world, inflation is declining. And we once again recorded this trend in November,” she added Lagarde.