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Saving in sentence

1808 examples of Saving in a sentence

All of this will mean a reduction in national saving and an increase in spending by households and the Chinese government.
China now has the world’s highest saving rate, probably close to 50% of its GDP, which is important both at home and globally, because it drives the country’s current-account surplus.
More precisely, a country’s current-account balance is exactly equal to the difference between its national saving and its investment.
The future reduction in China’s saving will therefore mean a reduction in China’s current-account surplus – and thus in its ability to lend to the US and other countries.
If the new emphasis on increased consumption shrank China’s saving rate by 5% of its GDP, it would still have the world’s highest saving rate.
Whether interest rates do rise will also depend on how US saving and investment evolves over the same period.
America’s household saving rate has risen since 2007 by about 3% of GDP.
Corporate saving is also up.
But the surge in the government deficit has absorbed all of that extra saving and more.
If Americans’ demand for housing picks up and businesses want to increase their investment, a clash between China’s lower saving rate and a continued high fiscal deficit in the US could drive up global interest rates significantly.
In this unlikely scenario, market expectations would adjust accordingly and rates would rise (saving glut and secular stagnation notwithstanding).
This remarkably low level reflects both the small share of household income in total GDP and the high rate of household saving.
The high rate of household saving in China reflects many factors, including the risk of job loss and the lack of a reliable government pension program.
Private health insurance would make such excessive saving unnecessary by pooling relatively small premiums from individuals – or from their employers – and then paying out to those who are hit with large medical bills.
Thus, by encouraging the purchase of health insurance by individuals or employers, the Chinese government could reduce significantly the overall household saving rate.
Tax incentives are now used in China to encourage employer plans for retirement saving.
This tax-favored employee saving plan is a good substitute for more comprehensive social-security pensions, but it has had the undesirable effect of increasing household saving, rather than increasing consumer spending.
By contrast, a similar tax rule to exempt employer payments for health insurance would reduce national saving by causing employees to substitute health insurance for large personal cash accumulations.
And focusing the favorable tax treatment on such major risk insurance would reduce the wasteful distortion to spend more on minor health conditions that do not stimulate household saving and do not need insurance protection.
In short, favorable tax treatment of the purchase of insurance for major medical costs would reduce the national saving rate, increase consumer spending, lower the public’s anxiety about the cost of treatment, and increase the quantity of health care.
For starters, households have not responded to ultra-low interest rates by saving less and spending more.
Specifically, Keynes denied that saving is simply deferred spending.
In a well-known passage, he wrote: “An act of saving means…a decision not to have dinner today.
But, while putting the ECB in charge of banking supervision solves one problem, it creates another: can national authorities still be held responsible for saving banks that they no longer supervise?
After all, the policies that China will implement in the next few years target the country’s enormous saving rate – the cause of its large current-account surplus.
In any country, the current-account balance is the difference between national saving and national investment in plant and equipment, housing, and inventories.
So any country that reduces its saving without cutting its investment will see its current-account surplus decline.
China’s national saving rate – including household saving and business saving – is now about 45% of its GDP, which is the highest rate in the world.
But, looking ahead, the five-year plan will cause the saving rate to decline, as China seeks to increase consumer spending and therefore the standard of living of the average Chinese.
Their net effect will be to raise consumption as a share of GDP and to reduce the national saving rate.
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