Spanish wealth almost doubles in just five years

1st June 2005, Comments 0 comments

1 June 2005, MADRID — The Spanish are almost twice as well off as they were five years ago, according to a study.

1 June 2005

MADRID — The Spanish are almost twice as well off as they were five years ago, according to a study.

The net worth of Spanish households rose by 8.5 percent between 1998-2003 because of rising property prices which went up 118 percent.

The Spanish daily El Pais reported how the study by the savings bank Caixa de Catalunya added this increase has been accompanied by large scale private consumption.

"Spanish households have achieved an unusual increase in wealth in the past few years as a result of the increase in property prices," the study said.

Caixa de Catalunya said the wealth of most Spaniards will continue to be healthy throughout 2005, with household spending expected to rise 4.8 percent.

But it did warn private consumption could be threatened by a dip in the housing market.

The increase in the net worth of property was more than double the rise in gross disposable income, which rose 35.5 percent  over the five year period.

The study said the net financial assets of households experienced more modest growth of 9.4 percent, largely because of a volatile stock market during this period.

[Copyright EFE with Expatica]

Subject: Spanish news

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