🌍 Savings as a Share of GDP in the 20 Largest Economies (2024)
- 🔹 National savings is similar to household saving: both trade current consumption for future returns.
- 🔹 Long-term growth is driven by both the level of savings directed to domestic investment and how those investments are allocated.
📊 Key observations:
- • China: A very high savings and investment rate points to the potential for continued strong growth.
- • G7 countries: Saving rates hovering around 20% of GDP across most G7 economies may signal risks to their relative economic standing over the next decade.
- • Canada: A saving rate of 23% is neither particularly strong nor alarming. However, the share allocated to non-residential investment at 15% is notably low.
- • Housing focus: Canada directs the highest share of investment to housing (33%) among the 15 countries (out of the top 20 economies) for which housing investment data is easily available.
📉 Bottom line:
Long-term growth and productivity depend not only on how much is invested, but on where investment is directed. While housing investment supports welfare and supply, it generally delivers less productivity growth.
Gross Domestic Savings of 20 Largest Economies (2024)
| Country | GDP ▼ ($ Billion) | Gross Domestic Savings (% of GDP) |
|---|---|---|
| United States | $28,751 | 17.1% |
| China | $18,744 | 43.4% |
| Germany | $4,686 | 25.3% |
| Japan | $4,028 | 25.3% |
| India | $3,910 | 28.6% |
| United Kingdom | $3,686 | 18.3% |
| France | $3,160 | 21.2% |
| Italy | $2,381 | 24.8% |
| Canada | $2,244 | 23.0% |
| Brazil | $2,186 | 17.3% |
| Russian Federation | $2,174 | 32.1% |
| Korea | $1,875 | 34.0% |
| Mexico | $1,856 | 18.6% |
| Australia | $1,757 | 26.4% |
| Spain | $1,726 | 25.3% |
| Indonesia | $1,396 | 36.9% |
| Turkiye | $1,359 | 31.3% |
| Saudi Arabia | $1,240 | 33.8% |
| Netherlands | $1,215 | 30.7% |
| Switzerland | $937 | 37.2% |
Source: World Bank
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