The annual growth rate of loans to households was unchanged at 3.5% in the first quarter of 2020 compared with the previous quarter. The financial investment of households increased at a higher rate of 2.8% (after 2.6%) and their gross non-financial investment decreased (-1.7% after an increase of 3.4%), while their net worth increased at a lower rate of 2.3% (after 5.4%).
The annual growth rate of the gross operating surplus of non-financial corporations (NFCs) stood at -5.9% in the first quarter of 2020, following an increase in the previous quarter (3.2%). Gross entrepreneurial income decreased, at a rate of -6.8%, after growing by 3.6%. The annual growth rate of NFCs’ gross non-financial investment increased to 2.3% (after -3.7%), while their financing increased at a broadly unchanged rate of 1.9%.
Households
The annual growth rate of household gross disposable income increased to 2.0% in the first quarter of 2020 (after 1.8% in the previous quarter). Gross operating surplus and mixed income of the self-employed decreased slightly (at a rate of -0.2% after increasing previously by 2.6%). Compensation of employees grew at a lower rate of 1.0% (after 3.0%). The annual rate of growth of household consumption expenditure decreased (-2.5%) compared to the previous quarter (1.9%).
The household gross saving rate in the first quarter of 2020 was 14.1%, compared with 13.1% in the previous quarter.
The annual growth rate of household gross non-financial investment (which refers mainly to housing) decreased to -1.7% in the first quarter of 2020, from 3.4% in the previous quarter. Loans to households, the main component of household financing, increased at an unchanged rate of 3.5%.
The annual growth rate of household financial investment increased to 2.8% in the first quarter of 2020, from 2.6% in the previous quarter. Among its components, currency and deposits grew at an unchanged rate of 5.1%. Investment in life insurance and pension schemes grew at a lower rate of 2.1% (after 2.6%), and shares and other equity grew at a higher rate of 1.7% (after 0.3%). Net sales of debt securities accelerated, reaching an annual rate of -12.3% (after -8.5%).
The annual growth rate of household net worth decreased to 2.3% in the first quarter of 2020, from 5.4% in the previous quarter. The growth in net worth was due to increases in the value of housing wealth (at a rate of 3.7%), which exceeded the increase in liabilities and the net valuation losses on financial assets. The household debt-to-income ratio continued to increase, to 93.7% in the first quarter of 2020 from 93.3% in the first quarter of 2019, as loans to households grew faster than disposable income.
Non-financial corporations
Net value added by NFCs decreased at an annual growth rate of -3.6% in the first quarter of 2020, after increasing in the previous quarter (2.9%). Gross operating surplus decreased in the first quarter of 2020 (at an annual growth rate of -5.9%), after a rise in the previous quarter (3.2%), and net property income (defined in this context as property income receivable minus interest and rent payable) decreased. As a result, gross entrepreneurial income, broadly equivalent to cash flow, decreased (-6.8% after an increase of 3.6%).[1]
The annual growth rate of NFC gross non-financial investment increased to 2.3% (from -3.7%).[2] Financing of NFCs increased at a broadly unchanged rate of 1.9%, while the annual growth rate of loan financing increased to 3.2% (after 1.9%). The annual growth rate of issuance of debt securities by NFCs decreased to 5.1% in the first quarter of 2020, from 6.4% in the previous quarter, and trade credit financing was broadly unchanged. Equity financing grew at a lower rate of 1.1% (after 1.5%).
NFC’s debt-to-GDP ratio (consolidated measure) increased to 79.3% in the first quarter of 2020, from 77.6% in the same quarter of the previous year; the non-consolidated, wider debt measure increased to 140.4% from 138.9%.
NFC financial investment grew at an annual rate of 2.1%, compared with 2.3% in the previous quarter. Among its components, loans granted as well as investment in shares and other equity both grew at a lower rate (1.3% after 1.6%, and 1.9% after 2.4%, respectively). Conversely, holdings of currency and deposits grew at a higher rate of 9.2% (after 5.7%).
