25.04.2025

Cash Assets of Germans at Record High

Record Growth of Cash Assets in Germany

The nominal cash assets of private households in Germany reached a new record in the fourth quarter of 2024. It increased by 136 billion euros to a total of 9,050 billion euros by the end of 2024. This remarkable increase is mainly due to capital gains in the stock markets and reallocations into short-term deposits.

Main Factors of the Increase

  • Stock Market Gains: The capital gains in the stock markets have significantly contributed to the increase in cash assets. Investments in stocks and mutual funds proved to be particularly lucrative, as they yield higher returns than low-risk investments such as bank deposits.
  • Reallocations into Short-term Deposits: Reallocations into short-term deposits also contributed to the increase in cash assets. This strategy may indicate a more cautious investment approach.

Distribution of Cash Assets

The distribution of cash assets in Germany is uneven. Wealthier households generate higher returns through investments in stocks and high-risk assets than poorer households, which primarily invest in low-risk assets.

Outlook for the Future

The increase could point to market changes that may pose new challenges in the coming months. Uncertainties in the markets could lead investors to adjust their strategies.

Comparison with the Euro Zone

In the entire Euro Zone, household cash assets increased by 5.5 percent to 33.2 trillion euros in 2024. This confirms that the trend is not only observable in Germany but across Europe.

German National Debt Comparison

In contrast, German national debt increased by 57 billion euros to 2.69 trillion euros in 2024. Despite a slight decrease in the debt-to-GDP ratio to 62.5 percent, this indicates ongoing pressure on public finances.