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Commercial Times: Household savings on the decline

Commercial Times: Household savings on the decline

Thanks largely to rapid growth in business savings, national savings have been on the rise over the past several years, reaching nearly 30 percent of Taiwan's gross national product. On the contrary, household savings have seen a decline. The average savings per household 10 years ago were between NT$220,000 (US$7,333) and NT$240,000, with savings making up 25-31 percent of disposable household income, government statistics show. Today, average savings are only NT$170,000-NT$190,000, with the household saving rate dropping to 19-21 percent. Of Taiwan's 8 million households, 80 percent have experienced a significant decrease in their savings over the years. Only the top 20 percent of income earners still enjoy a high saving rate at 35 percent, while the bottom 20 percent of households have seen savings in negative territory for six consecutive years. Such a development is no surprise given income levels that have been stagnant for more than a decade despite rising costs of living and soaring housing prices. The fall in household savings represents lower livelihood security. It also means that less capital can be invested in economic development. This could very well lead to various social and economic problems unless the trend is reversed. (Editorial abstract -- Dec. 31, 2013) (By Y.F. Low)


Updated : 2021-07-31 13:23 GMT+08:00