Savings are an important means of gathering funds, regulating the circulation of money, and promoting the improvement of residents' living standards. China's savings rate has been at a high level in the world, but in recent years, China's savings rate has also shown a significant downward trend, so what is the impact of the low savings rate?
1. A low savings rate does not mean that residents' wealth has decreased
Property spending squeezes residents' savings is the main reason for the decline in the savings rate, and the continued rise in house prices has led residents to spend more money on buying a house. The change in residents' consumption concept is also one of the reasons for the decline in the savings rate, especially the consumption demand of contemporary young people is significantly higher than that of the older generation. Population aging will also lead to a low savings rate, which represents a decrease in the proportion of the main labor force in society, and when consumption is greater than income, the savings rate will decline.
2. Reduce the family's ability to resist risks
A low household savings rate means that when households have external expenses, such as major illnesses, they will face greater financial difficulties that need to be solved through loans or credit cards. The United States is the world's famous low savings rate countries, according to a survey by the Federal Reserve, nearly a quarter of the residents of the United States do not have a reserve of ancient pensions, and the pension of residents will also become a problem.
3. Affect house prices
When the residents' savings rate decreases, the demand for housing will also decrease accordingly, and changes in supply and demand will eventually affect house prices, causing house prices to fall.
4. Influence investment
Investment, exports, and consumption are the troika that drives the country's economic growth, and a decline in the savings rate will make corporate financing more difficult, which will lead to a decline in investment growth.
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