Abstract
Research background: Global pandemics, like other crises, is reflected in financial decision-making. For many individuals, the crisis represents a loss of confidence in the economy; fears of losing their jobs, and by analogy, subjects assume a deterioration in their own economic situation. In relation to income shocks, consumers exhibit three types of financial behavior: realizing consumption, generating debt or generating savings. The growth of savings with the entrepreneur's investment restraint, increasing the debt burden significantly affects the social sphere and the economic competitiveness of the region in the global space. Purpose of the article: The article deals with a comparison of the development of savings and household debts in Czechia during the economic crisis and the development during the pandemic. At the same time, the analysis includes a comparison of the values f the development of savings and debts with the development of the consumer confidence indicator in the given period. Methods: The main method of the paper is analysis, comparison of data and prediction of the development of quantities. Quarterly and monthly data for the period 2009 - 2013 and 2020 - 2021 were used for the analysis. Basic for analysis and comparison was represented by the ARAD databases, the Czech Statistical Office, etc. Findings & Value added: The results show that the more dynamic growth of savings in the pandemic was caused by limited consumption, but also by wage growth. Debt growth was more pronounced during the economic crisis, during the pandemic it is a reflection of housing needs and developments in the real estate market.
Highlights
Many households save during their life cycle; the aim is to finance the reduction of income in old age, their children's studies or real estate purchases
It can be stated with certainty that there is a relationship between household savings and economic development
If we look at the current development of the gross savings rate calculated as the share of savings in gross disposable income, it is clear that during the financial crisis in 2008 savings were formed, but they did not experience such acceleration as during the pandemic
Summary
Many households save during their life cycle; the aim is to finance the reduction of income in old age, their children's studies or real estate purchases. The Covid 19 pandemic has affected all spheres of life in the global space. From an economic point of view, a pandemic is likened by many experts to a black swan, similar to the credit crunch (Taleb, 2007; Newmeyer, 2021 ), i.e. a pandemic crisis occurred without anyone anticipating it. Taleb, 2007 refuses to evaluate the situation of Covid-19 as black swans, governments could react much faster, and the signs of disaster were clear. From the household's (microeconomic) point of view, the low savings rate is an economic factor in reducing the quality of life. It can be stated with certainty that there is a relationship between household savings and economic development
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