Just How Much Does China Save vs the Rest of World?

A key plank of China’s latest monetary stimulus was the scrapping of remaining interest rate caps on short-term deposits.

The liberalization of the interest rate regime should support China’s ambitions to get the yuan added to theInternational Monetary Fund’s pool of international reserve currencies. But the move also has implications for how China’s transformation away from an export and investment led economy to a consumption-led economy plays out.

Chinese households tend to save more cash than their spendthrift peers in the Western world, so potentially earning higher interest rates on their deposits should boost incomes and spending.

But how high is China’s gross savings rate? The World Bank defines it as gross national income less total consumption, plus net transfers so a broader gauge than just individuals by including both companies and the government.

Pretty high, according to data from the World Bank from 2013, the latest period for which data are available. Only Kuwait and Bermuda had higher rates as of 2013.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam