National savings rate

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The Globe and Mail  Oct 8  Comment 
Plus, how home sales are booming. And, corporate leaders on climate change
GreenLightAdvisor Views  Oct 2  Comment 
I published a post yesterday quoting Richard Koo, chief economist of Nomura Research Institute and author of Balance Sheet Recession, as saying American consumers are suffering from a balance sheet problem and will not increase consumption until...
Clusterstock  Sep 30  Comment 
This chart should give chills to anyone hoping that Americans will stop saving and start spending again. For one thing, we're way below the personal savings rate we saw in the early 70s, let alone the savings rate in the pre-Greenspan era. Plus,...
Clusterstock  Sep 30  Comment 
Waiting for a big consumer comeback? Don't. David Goldman argues that if you think the savings rate is too high now, you're in for the shock of your life. The problem is that Americans have not yet begun to save. With the largest retirement...
Bloomberg  Sep 28  Comment 
(Update1) Pacific Investment Management Co. strategic adviser Richard Clarida said the U.S. savings rate may exceed 8 percent, hurting consumer spending and weighing on the economic recovery.
Top Foreign Stocks  Sep 15  Comment 
The U.S. personal savings rate rose to 6.9% in May this year as American consumers saved more of their income. This is the highest in the past 15 years. In 2006, the savings rate fell below zero. Chart: Recent Trends in US Personal Savings Rate...
Sober Look  Sep 12  Comment 
The spike in savings rate is clearly linked to the recent household wealth destruction. The chart below shows just how steep the decline in net worth has been. The housing bubble caused such a rapid spike in household wealth, that the...
Stock Blog Hub  Sep 11  Comment 
by David Fessler, Advisory Panelist We’ve all heard this from our parents: “Spend what’s left after saving, instead of saving what’s left after spending.” Or perhaps this was drummed into your head: “Always save for a rainy...
InvestorCentric  Sep 1  Comment 
The US savings rate which was around 1 percent last year, appears to have rebounded to 4.2% in July, which is far below China's saving rate of nearly 40% . However Andrew Kaplan makes a compelling argument of why this number is totally false....
naked capitalism  Aug 31  Comment 
By Andrew Kaplan, a hedge fund manager: It has become fashionable among equities managers of the bullish persuasion to argue that a strong recovery in GDP will occur in 2010 because the “structural adjustment period” of moving back to a more...
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National Savings Rate is the percentage of GDP that is saved by households across a country. Household saving is one of the primary sources of capital investment in the country. Thus, this rate can be used as an indicator for long term economic growth.

Household Savings Rate for developed nations
Household Savings Rate for developed nations[1]

The graph above shows the historical trend in savings rate in developed countries. The differences in the rates occur due to the age of the working population, the amount of old age pension and insurance provided by the government. The age of the population is significant because the older and retired use their savings more than the younger, working population. Moreover old age pension and insurance provided by the state allows the population to spend rather than save more.

The Bureau of Economic Analysis publishes the Personal Savings rate as a National Economic Indicator on a quarterly basis.

Personal Savings Rate in the US
Personal Savings Rate in the US[2]


References

  1. Household saving rates for selected countries
  2. Bureau of Economic Analysis
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