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Household net worth rises again as debt levels fall - Central Bank

Households' debt sustainability has improved as people pay off loans and see a slight improvement in income
Households' debt sustainability has improved as people pay off loans and see a slight improvement in income

Household net worth continued to rise in the third quarter of 2014, according to the Central Bank, with household debt falling at the same time.

Net worth grew by 5.5% in the period, standing at €576bn by the end of September, driven largely by an increase in housing assets.

The continued growth puts household net worth 28.3% higher than at its lowest point in early-to-mid 2012.

Meanwhile, household debt was €1.9bn lower at €160.6bn, placing it 21.2% lower than at its peak.

The Central Bank said this improvement was largely due to a reduction in household debt, as well as a slight increase in disposable income.

On a per capita basis, household net worth and debt stood at €124,523 and €34,846 respectively.

The Central Bank figures also show a slight improvement in debt sustainability, with debt as a proportion of disposable income falling by 2.4 percentage points to 177%.