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National Savings Rate

What is 'National Savings Rate'

An estimate from the U.S. Commerce Department's Bureau of Economic Analysis (BEA) of the amount of income left over after subtracting consumption costs and expenditures. The National Savings Rate, though it is referred to as a "savings rate," does not actually measure the amount of money Americans are saving or investing for the long-term. National savings include savings left over from personal, business and government.

Explaining 'National Savings Rate'

The National Savings Rate is confusing at first glance, due to the fact that it is often substantially less than what the typical American reports contributing to their employer-sponsored retirement plans and IRAs. This difference is because the national savings rate includes government savings, and they are usually reporting deficits which lowers the national savings rate.


Further Reading


dependency ratio, foreign capital inflows and the rate of savings in Pakistan [with comments]
www.jstor.org [[with comments]' href='https:/api.miniature.io/pdf?url=www.jstor.org%2Fstable%2F41259604'>PDF]
… Estimates of National Saving Rate … World Development 11:7. Giovannini, A. (1985) Saving and the Real Interest Rate in LDCs … The Pakistan Development Review 27:4. Khan, Ashfaque H. (1989) Financial Repression, Financial Development an Structure of Savings in Pakistan …

The Chinese corporate savings puzzle: a firm-level cross-country perspectiveThe Chinese corporate savings puzzle: a firm-level cross-country perspective
www.nber.org [PDF]
… Estimates of National Saving Rate … World Development 11:7. Giovannini, A. (1985) Saving and the Real Interest Rate in LDCs … The Pakistan Development Review 27:4. Khan, Ashfaque H. (1989) Financial Repression, Financial Development an Structure of Savings in Pakistan …

Do private pensions increase national savings?Do private pensions increase national savings?
www.sciencedirect.com [PDF]
… Estimates of National Saving Rate … World Development 11:7. Giovannini, A. (1985) Saving and the Real Interest Rate in LDCs … The Pakistan Development Review 27:4. Khan, Ashfaque H. (1989) Financial Repression, Financial Development an Structure of Savings in Pakistan …

National savings rate and sectoral income distribution: An empirical look at ChinaNational savings rate and sectoral income distribution: An empirical look at China
www.sciencedirect.com [PDF]
… Estimates of National Saving Rate … World Development 11:7. Giovannini, A. (1985) Saving and the Real Interest Rate in LDCs … The Pakistan Development Review 27:4. Khan, Ashfaque H. (1989) Financial Repression, Financial Development an Structure of Savings in Pakistan …

Demography, national savings, and international capital flowsDemography, national savings, and international capital flows
www.jstor.org [PDF]
… Estimates of National Saving Rate … World Development 11:7. Giovannini, A. (1985) Saving and the Real Interest Rate in LDCs … The Pakistan Development Review 27:4. Khan, Ashfaque H. (1989) Financial Repression, Financial Development an Structure of Savings in Pakistan …

Recent Evidence on Budget Deficits and National SavingsRecent Evidence on Budget Deficits and National Savings
www.nber.org [PDF]
… Estimates of National Saving Rate … World Development 11:7. Giovannini, A. (1985) Saving and the Real Interest Rate in LDCs … The Pakistan Development Review 27:4. Khan, Ashfaque H. (1989) Financial Repression, Financial Development an Structure of Savings in Pakistan …



Q&A About National Savings Rate


How much less than what typical American reports contributing to their employer-sponsored retirement plans and IRAs is this national savings rate?

This national savings rate is confusing at first glance because it is often substantially less than what the typical American reports contributing to their employer sponsored retirement plans and IRAs. This difference is because the national savings rate includes government savings, which are usually reporting deficits that lower this national savings rate.

What is the National Savings Rate?

The National Savings Rate is an estimate from the U.S. Commerce Department's Bureau of Economic Analysis (BEA) of the amount of income left over after subtracting consumption costs and expenditures.

What does this savings rate include?

This savings rate includes personal, business and government savings.

Is this savings rate a measure of money saved for long-term investments?

No, it does not actually measure the amount of money Americans are saving or investing for long-term investments.