Japan in the World
Rapid Rise in Savings Rates Due to Disappearing
Demand
Japanese and US household savings rates
(as a percentage of national income)
%
30.0
US
Japan
25.0
20.0
15.0
10.0
5.0
NOMURA
Structural changes in economic fundamentals
are thought to be having an effect on prolonged
low interest rates in developed regions outside
the US as well, in addition to any policy changes
after the US presidential election or new FRB
strategy
A rise in savings rates has been noticed in
developed regions including Japan and the US in
recent years, in tandem with the aging of their
populations. The COVID-19 pandemic
accelerated this trend. This trend in savings rates
is the flip side of stagnation in consumption-
centric demand, and can be identified as one of
the factors behind the low growth and low
inflation underpinning prolongation of low interest
rates
0.0
-5.0
95 97 99 01 03 05 07 09 11 13 15 17 19 CY
Source: Cabinet office, Government of Japan and U.S. Department of Commerce materials
LO
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