USV Annals of Economics and Public Administration (Dec 2022)
THE EFFECT OF THE COVID-19 PANDEMIC ON SAVING BEHAVIOUR: CASE OF ROMANIA
Abstract
In contemporary society, at the macroeconomic level as well as at the individual level, of person or society, economies play a key role with a direct impact on the behaviour of the population. In the context of the COVID-19 pandemic, this study systematically explored whether and why the health crisis stimulates consumers’ preference for savings (over spending). The purpose of this paper is to analyse the preferences of the population but also of the economic agents regarding the investments in bank deposits, investments made by them both at European and national level. The analysis consists in the analysis of the evolution of savings in Romania but also in other European countries and is based on the data published by the Central Bank of Romania in the NBR statistics, FGDB statistics but also the data published by Eurostat. Savings are also analysed by institutional sectors, with a focus on the household sector and non-financial corporations. The results of the study show that in order to better cope with future uncertainties and risks, individuals can reserve resources and increase their saving behaviour. It is also observed that individuals facing a pandemic save more than in periods of stability.
