Private savings

Private savings contribute an overwhelming proportion of total domestic or national savings in the developing countries of the ESCAP region other than the centrally planned economies. It has been remarked that “perhaps no other characteristic of an economy is at the same time so important, so exclusive of precise measurement and so difficult to explain as the private savings rate”. Private savings depend on a variety of frequently interrelated variables. These include such economic factors as the level and rate of growth of income and wealth, uncertainties pertaining to them, levels and structure of taxation, the rates of interest and inflation, the extent of financial intermediation, the distribution of real income and wealth, and government policies. Among the major sociodemographic determinants are occupational and urbanization patterns, dependency ratios, and size and age structure of households. Even the cultural character of the people has been used to explain the consumption (and savings) behaviour in some countries.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities