Consumers around the globe have amassed an extra $5.4 trillion in savings since the COVID-19 pandemic began, setting the stage for a spending boom that could power a strong uplift in economic growth this year. The U.S. boasts the largest share of excess savings, amounting to $2.6 trillion, or 12% of U.S. GDP. This excess savings was driven largely by two factors – those with unaffected incomes that stopped spending on travel, entertainment and dining out and the unprecedented government support for workers and companies during the past year.

“The combination of an unleashing of significant pent-up demand and overflowing excess saving will drive a surge in consumer spending across the globe as countries approach herd immunity and open up,” Moody’s Analytics chief economist Mark Zandi said. “We expect approximately one-third of the global excess saving will be spent this year, adding just over 2 percentage points to global GDP growth.”

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