Post by earl on Feb 12, 2008 20:44:35 GMT
The combined total wealth held by Irish households surpassed €1 trillion for the first time at the start of 2008, according to an economic report published this morning from National Irish Bank.
NIB's economist Ronnie O'Toole suggests that excluding owner-occupied housing, the average household in Ireland had wealth of €352,000 but was servicing average debt of €127,000.
Average wealth amongst those who own their own home stands at €674,000, according to NIB estimates.
However, there was a significant slowdown in the rate of growth in household wealth, from 16% in 2006 to less than 3% last year, because of falling property asset values.
'There has been a transformation in Ireland's aggregate wealth holdings over the last decade,' commented Garvan Callan, Head of Wealth Management at National Irish Bank.
'The extraordinary rise in the wealth of Irish households was fuelled by the takeoff of the Celtic Tiger economy, resulting in higher incomes and higher savings. However, the single most important driver of wealth in Ireland has been the increase in property values,' he added.
'While the current economic slowdown is likely to limit future growth to low single digit figures in the years to come, the aggregate level of wealth is unlikely to decline,' said Ronnie O'Toole, NIB's chief economist.
'The trend we are witnessing of the rise in wealth holdings is a result of very long term factors. Economic cycles will come and go, though this transformation of our wealth holdings reflects a fundamental change in our society,' he added.
NIB's economist Ronnie O'Toole suggests that excluding owner-occupied housing, the average household in Ireland had wealth of €352,000 but was servicing average debt of €127,000.
Average wealth amongst those who own their own home stands at €674,000, according to NIB estimates.
However, there was a significant slowdown in the rate of growth in household wealth, from 16% in 2006 to less than 3% last year, because of falling property asset values.
'There has been a transformation in Ireland's aggregate wealth holdings over the last decade,' commented Garvan Callan, Head of Wealth Management at National Irish Bank.
'The extraordinary rise in the wealth of Irish households was fuelled by the takeoff of the Celtic Tiger economy, resulting in higher incomes and higher savings. However, the single most important driver of wealth in Ireland has been the increase in property values,' he added.
'While the current economic slowdown is likely to limit future growth to low single digit figures in the years to come, the aggregate level of wealth is unlikely to decline,' said Ronnie O'Toole, NIB's chief economist.
'The trend we are witnessing of the rise in wealth holdings is a result of very long term factors. Economic cycles will come and go, though this transformation of our wealth holdings reflects a fundamental change in our society,' he added.
It states that the average household has €352,000. If that's the case, I'm off to rough up my house mate for holding out on me!
