The financial assets of Irish households increased from €176 billion to €272 billion over the five years to 2005, but they remain among the lowest in Europe, according to the latest figures published by the Central Bank.
The data, contained in the Summer Quarterly Bulletin, also show that the growth in the net financial assets of Irish households - defined as their assets such as cash, savings, shares and insurance policies less financial liabilities such as loans - has failed to match overall growth levels in the economy.
Net financial assets have fallen from 98 per cent of economic output (gross domestic product or GDP) in 2001 to just 79 per cent in 2005.
The decrease is explained by the large loans taken out by households to fund house purchases as property prices soared. Over 70 per cent of household borrowings were used to fund property purchases. When the value of these properties is included in the calculations, household assets as a percentage of economic output increased from 352 per cent to 418 per cent over the period.
However, when the value of the properties is excluded, Irish households' net financial assets as a percentage of economic output are well below the European average of 128.4 per cent. For Switzerland, the figure is 229 per cent, while for Norway, it is 22.5 per cent.
The bank said that the figures were not surprising given that many Irish households were relatively young and had big mortgages.
In addition, the economic growth of recent years "has not persisted long enough to bring wealth here up to levels in core European economies", the bank added.
