savings ratio


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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.

savings ratio

the proportion of NATIONAL INCOME that is saved by households (see PERSONAL SAVINGS RATIO), by businesses in the form of RETAINED PROFITS, and by the government in the form of BUDGET SURPLUSES.
References in periodicals archive ?
Consumers have dipped into savings over the past two years, causing the household savings ratio to fall steadily.
He also expressed his concern over declining national savings ratio to GDP 12.
3 portrays a substantially lower personal savings ratio (= household savings as percent of disposable income) in the periphery than in the core.
UK disposable income rose for a second quarter in the three months through September and the savings ratio declined, highlighting the dependency of Britain's recovery on consumer spending.
Also, savings ratio in Muslim countries is low and awareness of mutual funds among retail groups is very low.
Marginal increases in the German savings ratio was noted in 2012 and this indicated lower consumer spending throughout.
The finished pallets provide a 4:1 space savings ratio over conventional pallets, and because they are considered processed wood, they are not regulated by IPPCISPM 15 for global shipping.
It measured a mean realized savings ratio of 98%, with some applications performing as high as 156% against expectations due to operators shutting off lighting manually.
The savings ratio - the money left after consumption - fell from 5.
He added: "The IoD has long argued that the legacy of the financial crisis, anaemic money supply growth, the squeeze on real take-home pay and an already low savings ratio, meant that quarter-on-quarter growth over the 2010-11 period was likely to weaken.
Simsek who spoke to reporters Wednesday at the OECD's Forum on Tax Administration (FTA) in Istanbul said it was highly probable for Turkey to maintain a strong economic growth, but not likely at rates as high as H1, as Turkey lacked the necessary savings ratio or access to international funds.
Just prior to the GFC the household savings ratio had fallen to pretty low, in fact in 2005 I think it went negative," he explained.