Savings rate

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Savings rate

Personal savings as a percentage of disposable personal income.

Savings Rate

The amount a person or organization places in a savings account or similar vehicle as a percentage of total disposable income. Savings are important for long term financial stability as it gives a person or organization a cushion for bad times. The savings rate may be calculated at microeconomic level for personal finances or may be aggregated at the national level to gauge financial health. A low or negative savings rate usually indicates excessive borrowing, spending, or both. On the other hand, a high savings rate may result in slower economic growth as persons and companies are saving instead of purchasing goods and services. See also: Rainy day fund.
References in periodicals archive ?
America's net national saving rate -- the sum of saving by businesses, households, and the government sector -- stood at just 2.
They claim that America's current-account deficit (or trade deficit), which is in fact the result of America's low and falling saving rate, is an indicator of unfair trade practices by Germany and China, two current-account surplus countries.
Measured as the ratio of gross domestic savings to gross domestic product (the latter being a measure of national income), our saving rate is quite strikingly the lowest among our Asean neighbors.
Youssef said Egypt requires a saving rate of 30% to reach a growth rate of 5% and higher.
Since independence low saving rate has been observed in Pakistan among South Asian countries which has resulted in low economic growth rate over time.
They find Chinese consumption growth will likely remain strong, at around 9 percent, over the next few years due to relatively stable income growth and an expected decline in the household saving rate.
the household saving rate, which is calculated by Statistics Canada as a by-product of Canada's National Accounts, is a reliable estimate of the amount that Canadian workers set aside for retirement; and
BRE[pounds sterling]KSEL (CyHAN)- The seasonally adjusted household saving rate in the eurozone was 13.
With income rising faster than spending, the saving rate rose to 5.
The higher saving rate may reflect a dialing back in spending by wealthy households, who command a larger share of assets and have a greater ability to tuck money away, compared with lower-income families, said Michael Madowitz, an economist at the Center for American Progress in Washington.
Meanwhile, the nation's household net saving rate stood at 45 percent last year, according to the BOK.
In the second quarter of 2013, the household saving rate in the eurozone decreased to 12.