According to the World Bank National Accounts Data, Brunei has the highest gross national savings. The progressive policies and macroeconomic stability of the country, account for a high Gross Domestic Product, which further pushes the economy towards higher savings.
The income and savings are directly proportional. The Gross National Savings account for the income which remains from the Gross Domestic Product after the Final Consumption Expenditure (household sector, private-corporate sector and public sector). When these savings, formerly a leakage, are invested, act as injections driving towards economic growth.
Savings are considered necessary owing to the nature of future incomes being uncertain and for retirement purposes. An individual’s Personal Disposable Income is either invested or saved. Any advances in the economy swells the Personal Disposable Income which further boosts the Marginal Propensity to Save. This is also called the Multiplier Effect: the effect of income on savings.
The few determinants of savings are-:
Varying Gross Saving Rates in Countries-:
Two broad patterns are observed amongst the nations in terms of gross savings as percentage of the Gross Domestic Product. First, the countries with a relatively high gross savings are either ‘crude’ economies or the ’emerging economies’.
Economies like Brunei and Qatar depend on crude resource extraction and processing as the source for their economic wealth and national savings. Whereas in the case of emerging economies of the east, such as Macao, China and Nepal, the low regulatory costs, results in more savings.
On the lower end, the countries like Sierra Leone, Burundi, Zimbabwe and Guinea, with a negative number, depicts the economy is spending more than the income being produced. This process of dissaving eventually makes a country low on national wealth creation.
Underlying is the table depicting the varying gross savings rates (percentage of the GDP) amongst the nations-:
Country | Gross savings (% of GDP) | Years | Country | Gross savings (% of GDP) | Years | |
Brunei Darussalam | 56 | 2016 | Slovakia | 22 | 2017 | |
Macao | 49 | 2016 | Jamaica | 21 | 2016 | |
Singapore | 48 | 2017 | Chile | 21 | 2017 | |
Suriname | 48 | 2017 | Dominican Republic | 21 | 2017 | |
China | 47 | 2017 | Honduras | 21 | 2017 | |
Nepal | 44 | 2017 | Latvia | 21 | 2017 | |
Philippines | 44 | 2017 | Romania | 21 | 2017 | |
Botswana | 40 | 2016 | Cote d’Ivoire | 20 | 2016 | |
Haiti | 40 | 2016 | Canada | 20 | 2017 | |
Qatar | 40 | 2016 | Italy | 20 | 2017 | |
Mauritania | 38 | 2017 | Pakistan | 20 | 2017 | |
Algeria | 37 | 2016 | Peru | 20 | 2017 | |
Ireland | 37 | 2017 | Poland | 20 | 2017 | |
Korea, Rep. | 36 | 2017 | Uganda | 20 | 2017 | |
Bangladesh | 35 | 2017 | Ukraine | 20 | 2017 | |
Norway | 34 | 2017 | Burkina Faso | 19 | 2016 | |
Sri Lanka | 34 | 2017 | New Zealand | 19 | 2016 | |
Switzerland | 34 | 2017 | Timor-Leste | 19 | 2017 | |
Malta | 33 | 2016 | Afghanistan | 18 | 2016 | |
Tajikistan | 33 | 2016 | Niger | 18 | 2016 | |
India | 32 | 2017 | United States | 18 | 2016 | |
Zambia | 31 | 2016 | Armenia | 18 | 2017 | |
Indonesia | 31 | 2017 | Colombia | 18 | 2017 | |
Macedonia | 31 | 2017 | Lithuania | 18 | 2017 | |
Ethiopia | 30 | 2016 | Cambodia | 17 | 2016 | |
Guyana | 30 | 2016 | Laos | 17 | 2016 | |
Myanmar | 30 | 2016 | Albania | 17 | 2017 | |
Thailand | 30 | 2016 | Cameroon | 16 | 2016 | |
Kyrgyzstan | 30 | 2017 | Fiji | 16 | 2016 | |
Netherlands | 30 | 2017 | Nigeria | 16 | 2016 | |
Sweden | 30 | 2017 | Bolivia | 16 | 2017 | |
Belarus | 29 | 2017 | Bosnia and Herzegovina | 16 | 2017 | |
Denmark | 29 | 2017 | Namibia | 16 | 2017 | |
Malaysia | 29 | 2017 | Paraguay | 16 | 2017 | |
Austria | 28 | 2017 | Portugal | 16 | 2017 | |
Azerbaijan | 28 | 2017 | South Africa | 16 | 2017 | |
Germany | 28 | 2017 | Uruguay | 16 | 2017 | |
Morocco | 28 | 2017 | Gambia | 15 | 2016 | |
Japan | 27 | 2016 | Swaziland | 15 | 2016 | |
Saudi Arabia | 27 | 2016 | Brazil | 15 | 2017 | |
Bulgaria | 27 | 2017 | Moldova | 15 | 2017 | |
Czech Republic | 27 | 2017 | Serbia | 15 | 2017 | |
Estonia | 27 | 2017 | Madagascar | 14 | 2016 | |
Hong Kong | 27 | 2017 | Argentina | 14 | 2017 | |
Russia | 27 | 2017 | Costa Rica | 14 | 2017 | |
Kuwait | 26 | 2016 | El Salvador | 14 | 2017 | |
Panama | 26 | 2016 | Guatemala | 14 | 2017 | |
Cabo Verde | 26 | 2017 | Benin | 13 | 2016 | |
Iceland | 26 | 2017 | Rwanda | 13 | 2017 | |
Mongolia | 26 | 2017 | Sudan | 13 | 2017 | |
Slovenia | 26 | 2017 | United Kingdom | 13 | 2017 | |
Belgium | 25 | 2017 | Iraq | 12 | 2016 | |
Bhutan | 25 | 2017 | Cyprus | 12 | 2017 | |
Ecuador | 25 | 2017 | Democratic Republic of the Congo | 11 | 2016 | |
Hungary | 25 | 2017 | Egypt | 11 | 2017 | |
Turkey | 25 | 2017 | Palestinian | 11 | 2017 | |
Bahrain | 24 | 2016 | Greece | 10 | 2017 | |
Israel | 24 | 2016 | Jordan | 10 | 2017 | |
Kazakhstan | 24 | 2016 | Kenya | 10 | 2017 | |
Tanzania | 24 | 2016 | Malawi | 10 | 2017 | |
Croatia | 24 | 2017 | Mauritius | 10 | 2017 | |
Luxembourg | 24 | 2017 | Montenegro | 10 | 2017 | |
Nicaragua | 24 | 2017 | Tunisia | 9 | 2016 | |
Vietnam | 24 | 2017 | Guinea-Bissau | 8 | 2016 | |
Bahamas | 23 | 2016 | Ghana | 7 | 2017 | |
Finland | 23 | 2017 | Lebanon | 6 | 2016 | |
France | 23 | 2017 | South Sudan | 6 | 2016 | |
Georgia | 23 | 2017 | Belize | 6 | 2017 | |
Kosovo | 23 | 2017 | Mozambique | 5 | 2017 | |
Mexico | 23 | 2017 | Angola | 3 | 2016 | |
Spain | 23 | 2017 | Zimbabwe | -1 | 2016 | |
Djibouti | 22 | 2016 | Burundi | -2 | 2016 | |
Lesotho | 22 | 2016 | Guinea | -6 | 2016 | |
Australia | 22 | 2017 | Sierra Leone | -13 | 2016 |
Know more:
Related maps:
The Republic of Madagascar is an island country located in the Indian Ocean, off the…
The Euro is the official currency of the European Union. It is, however, not incumbent…
There are many countries or regions that are partially recognized by the UN, have disputes…
The Alaska Statehood Act was signed into law by President Dwight D. Eisenhower in 1958,…
The name Persia may, however, only be used to refer to Iran in some contexts.…
Hawaii is an Island State in the US. It is one of the 50 states…