Many of the world’s biggest savers are live in the developed markets.
Germany leads that pack with a gross savings rate of 17%, followed closely by Australia with 16.7%, and France with 15.1%, according to a new KKR report
“[A] pattern of higher savings and lower wages is now preventing developed market consumers from consistently being the engines of global growth that they were during the past few decades,” writes KKR’s Member and Head of Global Marco and Asset Allocation, Henry H. McVey.
Still, the biggest overall saver is still China — with a gross savings rate of 40.7%.
China’s savings rate has been significantly higher than that of other countries for some time now because it “does not have the same safety net as other countries,” Alexandra Stevenson wrote in the New York Times. “Most Chinese have to save for retirement and health care because the country’s social welfare system needs to be developed. The Chinese also save money for education,” she adds.
Currently, Beijing is working on implementing long-term policies in order to transition its economy into a new, consumption-based model. However, “getting more savers to become spenders will not be so easy,” according to Stevenson.