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China’s National Savings: Structural Changes and Underlying Problems (No.283, 2020)
2021-01-15
By Jia Shen, Department of Development Strategy and Regional Economy, DRC
Research Report, No.283, 2020 (Total 6027) 2020-12-1
Abstract: China’s national saving ratio has witnessed a continuous decline since 2008. In terms of the changes in the growth rates of national income and consumption, the reduction in China’s national saving rate is mainly resulted from the decline in national income growth speed induced by the grim export performance. In light of different sectors, the decline in national savings is mainly affected by the reduction in saving rates of governments and enterprises. The proportions of household dispensable income and savings in national aggregate income and savings have increased, while the proportion of its capital formation in that of the domestic total has decreased. The accumulating and using of national savings tend to concentrate in different departments, adding to the cross-department savings liquidity demand with increasing debt pressure posed by structural savings shortages on governments and enterprises. Apart from that, there are signs showing the ever-expanding household saving surplus and saving imbalance. In the future, vigorous efforts are needed in knowledge-intensive industries development so as to explore new space for export promotion. In addition, saving structure adjustments need to focus on optimizing the residents’ income distribution in a rational manner, stabilizing enterprises’ income and proactively giving play to the role of public expenditure.
Keywords: national savings, saving structure, capital circulation
