Table IV-2 – Savings and investment rates in selected countries, percentage of GDP
China Rep. Korea Hong Kong, China Singapore Indonesia Malaysia Philippines Thailand India Viet Nam
TE-2001 38 33 31 45 23 36 17 31 26 33
Savings TE-2004 44 33 31 39 26 34 18 29 32 31
TE-2007 53 32 34 44 27 37 18 30 37 34
Investments TE-2004 41 24 30 24 25 22 21 20 29 35
TE-2001 36 19 30 25 23 26 31 22 24 30
TE-2007 44 25 30 21 29 21 20 21 37 38
Source: ADB (2009)
Domestic savings comprise those of governments, corporations and households. This is illustrated for a selection of countries in Figure IV-3. Generally the smallest proportion of savings comes from governments, though in India and the Philippines this proportion has been rising. Corporate savings are somewhat larger and have generally been increasing in line with corporate profits – a reflection of expanding business as well as, in some
cases, of favourable tax regimes. In China and India a significant proportion of total savings comes from households and these savings have been increasing. The outcomes on savings and investment ultimately depend on the decisions of private agents, but these decisions are influenced significantly by government policies, particularly with regard to
Figure IV-3 – Domestic savings in selected countries for two periods, as a percentage of GDP
China (TE-2003) China (TE-2006) India (TE-2004) India (TE-2007) Philippines (TE-2004) Philippines (TE-2007) Republic of Korea (TE-2003) Republic of Korea (TE-2006)
0
10
20
30 % of GDP Corporations
Government Source: ADB (2009).
73
40
50 Households
60
2009/10
ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS IN AN ERA OF GLOBAL UNCERTAINTY : ASIA-PACIFIC REGIONAL REPORT