Government debt increased by €3.7bn to stand at €255bn in Q3, the highest level in the series for a second consecutive quarter. This equates to €166,932 per capita.
Saving
Gross household saving increased by €570m to stand at €6.4bn in Q3.
Private sector debt as a proportion of GDP also continued its downward trend.
The quarterly financial accounts (QFA) present a complete set of quarterly financial data for all sectors of the Irish economy with comprehensive information on the financial and investment activities of households, non-financial corporations, financial corporations, government and the rest of the world.
The rise in household net worth was driven by an increase in financial assets of €10.2bn, primarily due to increasing investment in deposits and a rise in the value of insurance and pension schemes.
Housing assets also increased marginally during the quarter, while household liabilities remained stable over the quarter.
Impact
The rise in wealth is in contrast to the impact of the pandemic on many households, the Central Bank says.
On aggregate, households experienced a fall in pay (-€1.0bn) over this quarter.
However, at the same time households have also seen a €2.9bn rise in social transfers (PUP) and subsidies (TWSS) alongside a fall in consumption (-€1.3bn).
These counteracting movements lessen the impact of unemployment and the fall in pay experienced by household net worth in aggregate.
Trend
Household debt fell by €352m over the quarter, continuing the downward trend in the series, to stand at €131bn in Q3.
Total debt now equates to €26,225 per capita.
Household debt has decreased by 36% since Q3 2008.
Debt
Household debt as a proportion of disposable income fell by one percentage point, to stand at 107%.
The decline over the quarter was driven by an increase in household disposable income over the quarter, in addition to the decrease in debt.
Gross household saving increased by €570m in Q3 2020, to stand at €6.4bn for the quarter with increased investment in currency and deposits.