Macroeconomic Factors’ Impact on the Volume of Household Savings in the Visegrad Four Countries

Jan Beluca , Alena Andrejovska , Grzegorz Michalski

Abstract

In the last decade the domestic financial environment was affected by a number of important factors that allowed increase of household indebtedness. From a macroeconomic perspective the Visegrad Four Group of countries belongs to the less indebted countries in the European Union, but tracking of the volume of savings showed the opposite effect. Submitted article evaluates development in household income, consumption, and savings in the V4 countries in 2005-2016. Impact of selected macroeconomic factors by multivariate panel regression analysis that solves linear relationship between savings and disposable income, gross domestic product, unemployment rate, and inflation rate, was evaluated. The analysis confirmed, that a statistically significant parameter of the model, and the most important determinants that have strongly positive impact in all the surveyed countries were inflation rate and unemployment rate. They had similar negative impact to modelling of the value of savings. Indicator increase by 1 percentage point caused decline in savings by 11.6743 units in case of unemployment and 12.5727 units in case of inflation.