México | Household saving during the Covid-19 pandemic.

Summary

We study mexican households savings and consumer credit patterns through the Covid-19 pandemic and the dynamics of these variables during the reopening period.

Key points

• Key points:
• During 2020, Mexican households increased their savings rate up to 30.27% due to sanitary restrictions and precautionary saving.
• The demand for consumer credit responded in the opposite direction to savings during the first quarters of the contingency.
• At the dawn of economic reopening, the accumulated excess savings runned out and the demand for consumer credit started to rise.
• We identify the main determinants of excess savings and their relationship with the demand for credit and the economic cycle.

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