The savings ratio is an economics term that refers to the proportion of income which is saved, usually expressed for household savings as a percentage of total household disposable income. It can be calculated gross or net, when calculated net, a deduction is made for the depreciation of fixed assets. The ratio differs considerably over time and between countries. The savings ratio is dependent on: The proportion of older people, as they have less motivation and capability to save; the tax system, it can encourage or discourage saving; the rate of inflation, expectations of rising prices encourage people to spend now. Disposable income is the amount of an individuals total income left after taxes, plus any transfer payments (grants) received from the government or elsewhere. ... Declining-balance depreciation of a $50,000 asset with $6,500 salvage value over 20 years. ... A tax (also known as a duty) is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...
The fall in the savingsratio from 9.7% in the fourth quarter of 1997 to 4.2% in the first quarter of 1991 is associated with a rise in GDP from 0.91 in the third quarter of 1997 to 2.31% by the third quarter of 1998.
This trend however is reflected elsewhere, for example, the savingsratio rises from 4.1% in the first quarter of 2000 to 7.5% a year later with GDP falling from 1.92% to 0.63% in the last quarter of 2000.
The amount of income saved by UK citizens could be relatively small and therefore wide fluctuations in the savingsratio have little impact on the overall pattern of GDP although it might be said to be one factor exerting an influence on the level of growth of GDP.
The ratio of gross household saving to GDP recovered from 2% in 2002 to 2.5% per cent in 2003 and 2004, but fell back to an average of 2% in the first half of 2005.
The ratio of gross saving by the corporate sector to GDP declined from 13.5% in 2002 to 12% in 2004 and 10.5% in the first half of 2005, the SARB added.
The recent weakening in the corporate savingratio was the result of relatively high dividend payments which coincided with a slowdown in the operating surpluses of incorporated business enterprises.
Feeds |
Contact