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What are the World's top saving countries? - Answers

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What are the World’s top saving countries?

Countries with highest Gross National Savings

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-:

  • The Demographics of The Region.
    A large number of dependent population leads to consumption requirement at the cost of savings. Thus, negatively affecting the rate of savings.
  • The Income Ratios.
    The accumulation of income in the hands of few has led to the unequal savings rate in different regions.
  • Productivity of The Region.
    An improvement in the productivity rates results in optimization and cost reduction. This positively affects the rate of savings.
  • Consumerism.
    The availability of multiple opportunities for an individual to borrow, has stimulated to a process of debt creation leading to a decrease in saving rate.
  • Paradox of thrift.
    The theory of paradox of thrift states that, people tend to save more during the financial crisis than when the economy is stable. It goes by the simple logic of fall in demand when the economy is in recession.
  • Others:   The price difference between domestic and foreign goods, inflation rates.

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

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