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 ?
However, because by definition the aggregate saving rate is the ratio of aggregate saving to aggregate income, instead of the weighted sum of individuals' saving rates, the measured aggregate saving rate is not necessarily zero but depends on the current housing price-to-aggregate income ratio.
This paper investigates these concerns in a two-country OLG model of the world economy with country-specific saving rates to mimic Asian economies.
Household saving rates have risen this year, with households adjusting to the weaker state of their balance sheets brought about by lower asset prices.
Saving rates have been steadily increasing since the onset of recession - after briefly turning negative for the first time at the beginning of 2008 - as households build up a buffer against the threat of unemployment.
A study of the possible impact of higher household saving rates says any increase "is likely to have important consequences for the economic outlook".
However, no insight into retirement saving can be gleaned from aggregate measures of household saving rates.
Russia and the other oil and gas producers need to increase investment in domestic projects to reduce their national saving rates.
I estimate the determinants of household saving rates in a cross-country panel, augmenting standard measures of public pension programme generosity and cost by indicators that proxy the actuarial component of the programme.
Using several large data sets, they find a strong positive relation between saving rates and lifetime income.
The personal saving rates for Canada, Germany, Japan, and the United States all declined from 1988 to 2005 (Chart 2).
Changing the shape of currency is subject to complicated economic criteria, including saving rates, inflation rates in addition to the number of clients' accounts which the banks seek to increase, banking sources told Egypt Today.
A friend claims that Filipinos who do save (that is, those with higher incomes) have saving rates even exceeding that of Singaporeans.