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 ?
Taiwan has a high household savings ratio, which remained at 21.25% of GDP and far surpassed major economies including Germany, the United States, and Japan.
"The Scottish trade balance for 2016 worsened by PS1.6billion and the savings ratio is at a record low.
The savings ratio falls quickly when the ratio of working people goes down in the population onus phase.
Second, I find that the behaviour of the savings ratio fits well with consumption theory.
The report analysed the SDG services portfolio, expenditure reports and projected cost savings to determine the cost-to savings ratio for the Government of Dubai as a result of shared smart government services.
However, the savings ratio is below levels that prevailed before the financial crisis, suggesting that consumers are spending pretty much every penny they earn while making limited provision for the future - if potential investment returns are low, why bother?
Turkey is known for having quite a low domestic savings ratio while consumer spending has been bolstered by credit card debt and personal loans that more and more consumers are unable to pay off.
SHAMIM FIRPO: I find the savings ratio very interesting because it's such a big determinant of economic activity.
Mr Archer also pointed out that the rise in unsecured consumer credit in November follows on from data from the Office for National Statistics showing that the household savings ratio dipped to 4.4% in the third quarter of 2015, the equal lowest rate since 1963.
Though consumer optimism was at its highest level since Q2 2005, the savings ratio fell to 5.0 per cent in Q1-14 and GDP is now 1.1 per cent above its pre-recession peak.
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 12.9% this year compared to 13.5% last year.