Subscribe Contact Us Congressional Research Service Documents Distributed by Penny Hill Press, offering your choice of immediate delivery by e-mail or postal delivery of all CRS publications. Historically, the portion of national saving that comes from the household sector has been small. It has declined annually in the 1990s. In the first quarter of 1999, household saving was negative. While household saving has always been a small fraction of GDP, it plays a crucial role in the net saving position of the country.
Net saving is important for additions to the national capital stock.
The fall off in the household saving rate is somewhat offset by a rise in the saving rate of the public sector and an inflow of saving from foreign countries. Many observers attribute the fall off in saving to the increasing stock prices, augmenting private wealth and diminishing the incentive to save. By e-mail or phone . Back to Economic Policy subject page. All rights reserved.