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Definition

11.1. Saving is defined as that part of current income (after direct taxes) that is not used up or transferred as part of household current consumption. Saving includes current disbursements made in the form of a reduction in household liabilities, i.e. repayment of capital on loans for housing and consumer durables. These repayments may be made to financial institutions, governments or other households.

11.2. Saving also includes regular and recurring employer and employee contributions to pension funds and interest earned on those pension funds that is not immediately accessible to the household.

11.3. Because saving is defined in terms of flows in the current account, it excludes capital gains and losses during the reference period.

11.4. In any given reference period, saving will be positive where income is greater than consumption and taxes. Saving will be negative, or dissaving where consumption and taxes are greater than income.

Comments

11.5. Saving is not directly affected by the receipt or consumption of income-in-kind. However, the level of saving achieved by households may be indirectly affected by the receipt of income-in-kind which may obviate the need to purchase consumption items out of cash income.