Philenews

Savings: In Cyprus When Things Are Good, In The Eurozone When Worried

Published February 25, 2026, 09:18
Savings: In Cyprus When Things Are Good, In The Eurozone When Worried

Savings in the Eurozone are directly linked to uncertainty and insecurity of households, as in times of economic uncertainty consumers reduce their spending and increase their savings. A study by the European Central Bank (ECB) shows that uncertainty affects consumers' decisions about spending and saving. However, in Cyprus, the increase in savings is due to different factors, such as the improvement of real disposable income and the positive course of the labor market. The ECB reports that deposits from the domestic private sector in Cyprus continue to increase, despite the uncertainty prevailing in the Eurozone. The ECB study found that 49% of unemployed respondents face difficulties in their daily lives, while 35% of employees are concerned about the possibility of job loss. These factors affect the sense of risk for household income and lead to increased savings. Overall, the ECB study highlights the importance of economic uncertainty in shaping consumer behavior, but also the differences that exist between Eurozone countries, such as Cyprus, where savings are more linked to economic prosperity than to uncertainty.