savings
Looking at graphs for the saving ratio, I noticed a paradox. When people felt it was a good time to save more, they actually saved less. When people felt it was a bad time to save, they actually save more.
Is it a Good Time to Save?
As part of the GFK consumer confidence survey. They ask a question – In view of the current economic situation – Is it a good time to save?
Definition of Household savings ratio: The percentage of disposable income that is saved. (1)Total savings = Disposable income – Household consumptionUK Saving RatioLatest UK household savings ratio: Q1 2017 = 1.7% (July 2017)
By contrast the average savings ratio in the past 54 years is 9.2% of disposable income.2017 has seen a dramatic fall in the UK savings ratio to a record low. This fall in the savings ratio has been caused byFall in real wages
Depreciation in Sterling post-Brexit – pushing up cost of…
Readers Question. We hear much about the “pensions time bomb”, as people tend to live longer and there is a bulge as “baby boomers” reach retirement age. We also hear much about the need to save for retirement. Saving *money* may mean people have more money in retirement but surely the real problem is to ensure there is more output; money is worth only what it can buy. Is there a risk that money saving will simply reduce current output and so reduce the income and incentives needed to…
Japan has traditionally had a high savings ratio, but, in past decade the savings ratio has fallen to be close to European / US levels.
Graph showing Japan Savings RatesJapan’s economy chasing illusionsSince 1998, though Japanese saving rates have declined.The graph is a bit hard to read, but, since 2004, Japanese saving rates have been at 2.5- 3.0%
Currently saving rates in Japan are…
