savings ratio

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Related to savings ratios: 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Second, I find that the behaviour of the savings ratio fits well with consumption theory.
Here the focus is on the savings ratio, the stationarity of which confirms that consumption and income are cointegrated.
Similarly, household savings ratio for South and for North shown in Table 1 corresponds roughly to the personal savings ratios in EMU core and periphery exhibited in Fig.
Fifth, while the savings ratios under financial autarky generated by the model are roughly in accordance with the empirical facts exhibited in Fig.
In addition, savings ratios in East and South East Asia -- among the highest in the world -- are not being utilised, according to the ADB.
Viewed in terms of savings ratios (the percentage of gross disposable income represented by savings), the Italians still ranked first with 21.4%, but the Portuguese came second with 19.7% Inflation tumbles in candidate countries.
For all Nordic countries except Sweden, the net fiscial savings ratio decreased more than the savings ratio in the period of the falling trend for savings ratios.
In all leading OECD economies savings ratios were falling and debt-income ratios rising as people were encouraged to borrow more in order to spend more.
They base their findings on median savings ratios by age from the 1983 and 1986 Surveys of Consumer Finances.
Halifax pointed out that these findings are set against a backdrop of one of the lowest savings ratios for 40 years.
Mr Santer said Asian economies were very dynamic, had a solid resource base, high savings ratios, skilled labour and benefited from entrepreneurial dynamism.
However, the effect was dampened by a fall in the household savings ratio.

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