InfoAnda - China's savings rate 'to drop in coming decade'

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Bomber kills 10 in Pakistan as army battles Taliban | 12 May 2009
Amazon's Kindle Fire shipments slump in Q1: IDC | | 4 May 2012
U.S. Senate passes landmark healthcare overhaul | 25 December 2009

Men's apparel sales to be a bright spot this holdiay season | 18 November 2011

Forum Views () Forum Replies ()

Read more with google mobile : China's savings rate 'to drop in coming decade'

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World China's savings rate 'to drop in coming decade' AFP - 1 hour 27 minutes ago Send IM Story Print China's savings rate 'to drop in coming decade' Slideshow: Full Photo Coverage: Business & Economy GENEVA (AFP) - – China's high savings rate is expected to fall substantially in coming years as its workforce shrinks, the population ages and social security spending increases, a BIS report shows. In research published by the Bank for International Settlements on the "myth and reality" of China's savings rate, Ma Guonan and Wang Yi found that the Asian giant needs its population to spend more in order to sustain rapid economic growth in coming years. The researchers, who were writing in their personal capacity, also reject claims that Chinese state firms have been benefiting from high savings thanks to exchange rate distortions and subsidies designed to drive economic growth. They point out that "less advantaged" and more efficient firms have been the ones posting the greatest gains in earnings in recent years rather than state-owned companies. China's gross national savings soared from 39.2 percent of output in 1990 to 53.2 percent in 2008, far higher than the United States, which saved just 12.2 percent in 2008. Even compared to other Asian giants -- Japan with 27 percent in 2007 and India with 33.6 percent in 2008 -- China's share of savings as a percentage of gross domestic product (GDP) is significantly larger. Nonetheless, the population and social trends that have underpinned China's growth and savings rates are likely tail off significantly over the next decade, the two Chinese researchers argued. The frugal Chinese have come under fire from critics who claim that Beijing fuelled a credit bubble in the West by investing these savings abroad, especially in the United States. Chinese holdings in US Treasury bonds reached 900.2 billion dollars in April, making it the biggest holder of such investments. In the wake of the global slump, world leaders and economists have been asking China to spend more, rather than pin its economic growth on exports to the West, in order to help address world trade imbalances. Ma, a BIS economist and Wang, who is from the Chinese central bank, note however that the current savings trend by Chinese households will not last. The swelling working population in recent years has boosted savings in recent years, they note. In addition, large-scale corporate restructuring between 1995 and 2005 increased job uncertainty, forcing workers to set aside more money in case they were fired. The lack of a social safety net also pushed workers to make "precautionary savings." Beyond households, government savings have also been increasing in tandem, as more is being set aside to meet pension needs which are expected to rise significantly as the population ages. However, these trends are expected to be reversed in coming years. "It is reasonable to assume that the large-scale labour retrenchment observed during 1995 to 2008 is by and large been behind us," say the researchers. In addition, China is expected to enter into a phase of "accelerated population ageing within a decade." This means that the workforce will decline, leading to a fall in overall income and therefore savings. At the same time, infrastructure spending is expected to continue, in order to provide for the ageing population and the urbanisation of the country. "Taken together, a key implication from these medium-term forces is that China's saving rate is likely to plateau before long and may ease off noticeably from the current 53 percent or even higher levels over the next 10 years. "The marked U-shaped experience of China's saving rate over the past 25 years also suggests that the prospective Chinese saving rate can fall meaningfully in the years ahead." Recommend Send IM Story Print Related Articles Japan to subsidise CO2-cut studies-newspaper Reuters - 27 minutes ago Apple Japan to improve iPod Nano fire warnings AFP - 41 minutes ago Australia's opposition targets boatpeople in poll bid Reuters - 1 hour 21 minutes ago China's savings rate 'to drop in coming decade' AFP - 1 hour 27 minutes ago Business outsourcing reshaping Philippine society AFP - 1 hour 54 minutes ago News Search Top Stories Putin sows controversy with Russia grain ban Third spacewalk needed to fix station cooling system: NASA Extra spacewalk likely after station repairs fall short: NASA Sauna contest in Finland cut short as Russian dies Massive ice island breaks off Greenland glacier More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Massive ice island breaks off Greenland glacier HP boss resigns amid sexual harassment claims 'Radioactive boars' on loose in Germany Climate change sparks 'quickest evolution ever' Sauna contest in Finland cut short as Russian dies More Most Viewed » Parachuting donkey shocks Russian beachgoers Argentine students crack three-decade-old murder mystery 40 US billionaires pledge half wealth to charity World's first full face transplant man appears on TV Calcium supplements linked to heart attacks: study More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

Other News on Sunday, 8 August 2010
Commissioner seeks delay in South Sudan independence vote
Eight dead as floods sweep central Europe
Explosion in Iraqi city of Basra kills 16 |
Iraq forces take over from last U.S. combat brigade
Towns submerged as 7 killed in central Europe floods |
Massive ice island breaks off Greenland glacier
'Radioactive boars' on loose in Germany
Iran's Ahmadinejad doubts Sept. 11 attack toll
Michelle Obama tours medieval Spanish town of Ronda
Afghan medical mission ends in death for 10
Fidel Castro speaks against war to Cuban parliament |
U.N.'s Ban names Turk, Israeli to flotilla probe |
Bashir warns foreigners to respect government or be expelled |
Downpours hamper Pakistan flood relief for 15 million
Mayor in drag leads thousands in Reykjavik Gay Pride march
India state leader seeks clearance for Korea's POSCO project
Main Kyrgyz party holds major rally
Saudi telecoms test fix in tentative BlackBerry deal |
Amsterdam celebrates Gay Pride with boat parade
Europeans, wealthy foreigners boost French tourism: experts
China's Olympic swimming centre to re-open as water park
Five NATO troops killed in volatile Afghan south
Moscow wheezes under smog as health worries grow
Afghan probe after eight foreign medics killed
US-TECH Summary
Residents flee as acrid smog blankets Moscow
NATO: 3 US service members killed in Afghanistan
Putin sows controversy with Russia grain ban
iPhone exec departs Apple after "Antennagate"
Colombia and Venezuela seek new start with Santos |
Scores killed and wounded in Iraq explosion
Saudi telecoms test fix to avert BlackBerry ban
Extra spacewalk likely after station repairs fall short: NASA
NATO: 3 service members killed in Afghanistan
Sauna contest in Finland cut short as Russian dies
Eight foreign medical workers killed in Afghanistan |
U.N.'s Ban names Turk, Israeli to flotilla probe
Mudslides devastate China town, kill nearly 100 |
Iran's Ahmadinejad doubts Sept. 11 attack toll
Pakistan troops evacuate thousands in flood disaster |
Bashir warns foreigners to respect government or be expelled
New cave-in blocks bid to rescue Chile miners |
Afghan medical mission ends in death for 10
South Korea's Lee picks reformist as PM; reshuffles cabinet |
S.Korea names new PM in big reshuffle
Arizona prison escapees linked to N.M. killings
Aussie shop offers to settle 33m dollar sex claim
Mudslides devastate China town, kill nearly 100
Global Weather-Asia-Celsius
China mudslides leave 96 dead, 2,000 missing
HP CEO ouster leaves leadership hole
Indonesian militants planned attack on president
Beer warehouse shooter long complained of racism
Pakistan troops evacuate thousands in flood disaster
Wind turns to gold in remote Romanian region
Australia opposition launches poll bid
US-ENTERTAINMENT Summary
iPhone exec departs Apple after Antennagate |
China's savings rate 'to drop in coming decade'
S.Korea replaces PM, seven ministers in reshuffle
Zsa Zsa Gabor's hospital release delayed
South Korea's Lee picks reformist as PM; reshuffles cabinet
Business outsourcing reshaping Philippine society
Hong Kong filmmakers shoot 'first' 3D porn film
China car demand eases but future still strong
Japan seeking to export low-carbon technologies
Zsa Zsa Gabor's hospital release delayed |
Wyclef Jean registers as Haiti presidential contender |
Turkish PM says agreement near on top commanders
Medvedev in first visit to Abkhazia since Georgia war
Saudi regulator delays BlackBerry ban to test 'solutions'
Sanctions nothing to fear: Iranian central banker |
Car bomb kills seven in Iraq city of Ramadi
Swisscom meets just 10 pct of iPhone 4 demand
South Korean fishing vessel held by North: coast guard |
Afghan commission: Civilian deaths up in 2010
Car bombs hit Iraqi cities of Ramadi and Falluja |
Flash floods inundate central Europe |
Afghanistan says to deal with security firms |
Rwanda's Kagame expects landslide win in elections |
Cardinal says Scots fed up with U.S. over Lockerbie |
North Korea seizes South Korean fishing boat
South Korean fishing vessel held by North
N.Korea seizes S.Korean fishing boat: report
Spain's economic crisis 'hits summer festivals'
Robbie Williams 'marries US actress'
Factbox
Sushi is tourists' favourite Japanese dish: survey
NZ annual house price growth slows again in July-QV
Egypt seeks to woo Arab tourists for Ramadan revels
Kuwait in BlackBerry talks but no ban for now: minister |
Australia's opposition targets boatpeople in poll bid
APEC targets higher-quality economic growth
Muslim holy month of Ramadan begins
Apple Japan to improve iPod Nano fire warnings
Saudi telecoms test fix to avert BlackBerry ban |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph	VPN on MacOSX	BlogMeter 1.01