Post
Topic
Board Economics
Re: Average savings across the globe
by
SummerBliss
on 02/10/2019, 07:02:59 UTC
The average personal amount of savings are between $ 2,900 for the USA and ¥ 5,806,554 for Japan. The USA comes last in our ranking, but their neighbor Canada is one of the richest countries regarding personal savings.

https://www.expertmarket.com/focus/research/countries-that-save-the-most-money


Savings is not always beneficial for economical growth. National Income is defined as sum total of consumption and savings i.e. Y = C + S.
Now suppose there is increase in income, the additional income could be either saved or spent. If it is saved then marginal propensity to save will increase which means no economic activity has been undertaken with additional money. Hence, MPS is inversely proportional to economic spending.
So if additional income is always saved then it may act as hindrance for economical growth.