Annual Household Saving Ratio (%)
Savings rates involve dividing household savings by gross disposable income. There are two ways to calculate savings rates. The first is using "real" national accounts, whereby "savings" corresponds to the remaining part of an income, once spending has been deducted. A second approach is to estimate savings based on financial accounts. Savings are then the result of three components:
Savings rate =
(rate of financial investment) + (rate of non-financial investment)
- (rate of credit use)
The rate of financial investments is calculated by dividing net acquisitions of financial products (deposits, securities, life insurance) with income. To determine the rate of non-financial investments, physical investments (principally, real estate, including housing and professional investments by individual entrepreneurs) are divided by income. The rate of credit use is calculated by dividing the increase in debt (new loans minus repayments) with income.
Both approaches tend to yield the same result, except when statistical adjustments have been made to the calculations. When putting together our Overview of Savings, the OEE uses the latter approach. The analysis of the different components of savings makes it possible to clarify and compare any changes in household saving behaviour.