Cover IMF Working Papers
Buy Book in Print
China’s High Savings: Drivers, Prospects, and Policies
Author:
Ms. Longmei Zhang
Search for other papers by Ms. Longmei Zhang in
Current site
Google Scholar Close
,
Mr. R. Brooks
Search for other papers by Mr. R. Brooks in
Current site
Google Scholar Close
,
Ding Ding
Search for other papers by Ding Ding in
Current site
Google Scholar Close
,
Haiyan Ding null

Search for other papers by Haiyan Ding in
Current site
Google Scholar Close
,
Hui He
Search for other papers by Hui He in
Current site
Google Scholar Close
,
Jing Lu null

Search for other papers by Jing Lu in
Current site
Google Scholar Close
, and
Rui Mano
Search for other papers by Rui Mano in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 277
Language:
English
Publication Date:
11 Dec 2018
DOI:
https://doi.org/10.5089/9781484388778.001
ISBN:
9781484388778
ISSN:
1018-5941
Pages:
38
Keywords:
WP; saving; China; household saving; GDP; Savings; Demographic Changes; Social Safety Net; Inequality; Housing; Projections; savings rate; government saving; SOE savings; saving inequality curve; Income; Social assistance spending; Consumption; Income inequality; Disposable income; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (2 MB) Download Epub
China’s high national savings rate—one of the highest in the world—is at the heart of its external/internal imbalances. High savings finance elevated investment when held domestically, or lead to large external imbalances when they flow abroad. Today, high savings mostly emanate from the household sector, resulting from demographic changes induced by the one-child policy and the transformation of the social safety net and job security that occured during the transition from planned to market economy. Housing reform and rising income inequality also contribute to higher savings. Moving forward, demographic changes will put downward pressure on savings. Policy efforts in strengthening the social safety net and reducing income inequality are also needed to reduce savings further and boost consumption.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund