National Savings(redirected from National Saving)
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The proportion of public and private savings as a percentage of national income. In simple economic models, the national savings is assumed to be the same as national investment, which is the total amount spent on securities and similar investment vehicles. That is, anything not spent by consumers or the government is assumed to be saved. A high national savings rate indicates lower levels of debt, which is positive. However, in an economy driven by consumer spending, a high savings rate may indicate uncertainty or lack of consumption, which can lead to a slowdown or a recession. That is, low or negative national savings usually indicates excessive borrowing, spending, or both. On the other hand, high national savings may result in slower economic growth, as persons, companies and the government are saving instead of purchasing goods and services.
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