Savings
in sentence
1605 examples of Savings in a sentence
Savings
are, of course, no bad thing.
And
savings
are particularly good for developing countries.
One of the most daunting challenges for poor countries is the need to accumulate investment capital under conditions of low
savings
without incurring too much foreign debt.
Spurring faster growth of small- and medium-size enterprises through relatively high investment in physical assets and R&D programs, improved infrastructure, and more rapid urbanization, all of which require a lot of
savings
to invest, is vital.
Without relatively high savings, a developing country like China may never catch up.
If a developing country has high
savings
(despite efforts to increase current consumption) as a result of structural factors, the best strategy is not to reduce
savings
through short-run “external shocks,” such as dramatic exchange-rate appreciation, which may kill export industries overnight.
Rather,
savings
should be channeled even more – and more efficiently – to domestic investment in order to avoid large external imbalances.
For example, China should use its current high
savings
to build up the country’s infrastructure and speed up urbanization, thereby laying a firmer foundation for future development.
Of course, a country must deal with a
savings
rate that is “too high” even if it is not necessarily the main cause of external imbalances.
A
savings
rate of 50% of GDP is too high under any circumstances, and household consumption equivalent to 35% of GDP is too low.
China must recognize that high
savings
will not provide stable growth over the long run.
High domestic investment may for the time being prevent “surplus savings” from creating too much upward pressure on the external balance, but, given trends in China’s terms of trade, growth without an increase in domestic consumption is unsustainable over the long run.
So bringing the
savings
rate down is necessary if domestic and external balances are to be achieved.
But what China really needs is a greater effort to promote domestic consumption and lower the
savings
rate.
Accumulating excessive debt usually entails moving some part of domestic aggregate demand forward in time, so the exit from that debt must include more
savings
and diminished demand.
None of these countries has adequate
savings
to cushion the blow of reduced revenues.
The government would face higher debt-service costs, but citizens would earn more on their
savings.
At the time, Japanese were very frugal, and low interest rates compelled many to hold their
savings
in cash in safe-deposit boxes.
The good news is that we already know many of the policies and technologies that can deliver substantial
savings
in energy consumption and CO2 emissions.
China has grown for the last few decades on the back of export-led industrialization and a weak currency, which have resulted in high corporate and household
savings
rates and reliance on net exports and fixed investment (infrastructure, real estate, and industrial capacity for import-competing and export sectors).
Low interest rates on deposits and low lending rates for firms and developers mean that the household sector’s massive
savings
receive negative rates of return, while the real cost of borrowing for SOEs is also negative.
Instead, on top of household savings, the
savings
– or retained earnings – of the corporate sector, mostly SOEs, tie up another 25% of GDP.
The US economy’s distinctive features for at least a decade prior to the crisis that began in 2008 were an unsustainably high level of consumption, owing to an illusory wealth effect, under-investment (including in the public sector), and
savings
that fell short of the investment deficiency.
Households, burdened with debt while their retirement
savings
wither and job prospects remain dim, have spent only a fraction of the tax cuts.
With American home values and retirement
savings
falling and Chinese unemployment numbers rising, observers worry that neither America nor China will have much appetite to cut emissions.
When the bubbles burst, households understandably became fixated on balance-sheet repair – namely, paying down debt and rebuilding personal savings, rather than resuming excessive spending habits.
Pension reform with private
savings
accounts and land reform leading to private ownership of land seem within reach.
Such an agreement could include trade in goods, services, financial instruments, and agriculture, and would necessitate greater compatibility of European and American regulations and legal norms, implying substantial
savings.
Concurrent with diminishing labor income, government-imposed ceilings on bank deposits – the primary
savings
vehicle for most households – have held down household capital income.
This fall in income has been magnified by rising household
savings
rates, driven by insufficient insurance for health care and old age, the high cost of education, growing income inequality, and demographic trends.
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