savings ratio


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Related to savings ratio: Liquidity ratio, Marginal propensity to save, Average propensity to save

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 ?
According to gender-based indicators, men in Turkey tend to save more than women, and their personal savings ratio has grown, despite the increasing level of employment of women.
8 per cent in the third quarter, the data showed, matching a previous estimate, and the savings ratio slipped to 5.
Current account, savings and investments and pensions: DWP's 'Family Resources Survey' publications, 2000-01 and 2010-2011; current deposit based (December 2012) and ISA savings balances (January 2013) from Halifax; adequacy of pensions savings and savings ratios by gender from Scottish Widows, 'UK Pensions Report 2012 (May 2012)'.
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.
Hargreaves added: "The increase in the UK's savings ratio is a cause for optimism.
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.
For example, if the economy's enormous savings ratio of 45 percent of GDP were to be reduced by, say, 7-8 percent (that is, consumption were to rise), the parameters of the accounting identity would be changed; by contrast, currency revaluation would not change them.
In the second quarter of 2009, the savings ratio rose to 5.
We restrict the parameters on income and wealth to sum to one, to ensure a stable savings ratio in the long run that is determined by the long-run constant term [alpha] and the wealth to income ratio.
Brought to you by the O2 conserving experts at Chad Therapeutics, the Oxymizer[R] is the simplest oxygen conserving device on the market, providing a savings ratio of up to 4:1 without the use of batteries, valves, or controls.