Banco de España introduces new household wealth accounts
The Banco de España has introduced new Distributional Wealth Accounts (DWA) to provide a quarterly overview of Spanish household net wealth and debt. These statistics combine micro data from surveys and national accounts to bridge existing information gaps.
Bridging the data gap in household wealth
Until now, understanding Spanish household net wealth distribution relied on the biennial Survey of Household Finances (EFF) for detail, or frequent but aggregated national accounts data.
This created an information gap, making it difficult to monitor changes, especially during economic volatility.
The new Distributional Wealth Accounts (DWA) bridge this by providing quarterly, national accounts-consistent data on total household wealth and debt across different groups in euro area countries.
As the Banco de España notes, the DWA "make it possible to track net wealth in a disaggregated manner on a quarterly basis," allowing early detection of trends and shifts.
Their development follows international recommendations from the G20's Data Gap Initiative, aiming for reliable, high-frequency statistics to support economic policymaking.
Combining micro and macro for a clearer view
Compiling the Distributional Wealth Accounts integrates micro data from the ECB's Household Finance and Consumption Survey (HFCS) and national accounts aggregates.
This methodology involves establishing comparability between concepts, reconciling micro data with national accounts totals, and estimating quarterly series.
The DWA reveal that while the distribution of total net household wealth in Spain has remained stable since late 2014, this conceals important shifts at the component level.
For instance, the share of debt held by the 50% least wealthy households has declined, alongside a reduction in their housing wealth, while the 10% wealthiest have seen increases in both.
A promising, yet experimental, tool
The Distributional Wealth Accounts represent a significant analytical advancement, finally offering granular, high-frequency insights into household wealth dynamics.
However, their experimental nature and ongoing need for methodological refinement mean initial findings require careful interpretation.
Despite these caveats, the DWA are an indispensable step towards a more informed understanding of economic challenges.