In this article, we will look at the 5 countries with the highest saving rates in the world. We have also discussed the saving trends of Americans in another article. If you are interested in reading about that along with a more extensive list, head straight to the 15 Countries with the Highest Savings Rate in the World.
5. Norway
Gross Savings (% of GDP): 49%
Norway’s strong saving culture is influenced by its strong social welfare system, high standard of living, and prudent fiscal policies. Citizens benefit from generous social benefits, such as healthcare and education, which are funded by high taxes and government savings from oil revenues. The country’s Oil Fund, one of the world’s largest sovereign wealth funds, instills a culture of saving for future generations.
4. Brunei Darussalam
Gross Savings (% of GDP): 50%
Brunei, a small yet oil-abundant country nestled between Indonesia and Malaysia, has an average income of approximately $69,297 in purchasing power parity, with a strong savings rate of 50%. This culture of savings finds expression notably through the Brunei Investment Agency, entrusted with the stewardship of the country’s sovereign wealth fund (SWF). Moreover, Bruneians prioritize saving owing to cultural values that strong focus on financial prudence and security, instilled through familial and societal norms. Additionally, the government’s policies, including tax incentives and financial education programs, further cultivate a savings-centric ethos among the population.
3. Zambia
Gross Savings (% of GDP): 51%
With Zambia’s central bank raising its benchmark lending rate to 12.5% with a persistently high inflation rate of 13.2% in January, savings and interest rates face a challenging situation. Savers would likely seek higher returns to offset the eroding purchasing power caused by inflation, thus favoring investment avenues offering competitive interest rates. However, the increased policy rate could potentially translate into increased interest earnings for savers who opt for fixed-income instruments such as savings accounts, bonds, or certificates of deposit. For instance, a savings account offering an annual interest rate of 12.5% would provide a hedge against inflation while accruing additional returns for depositors.
2.Qatar
Gross Savings (% of GDP): 58%
Qatar benefits from a strong economy driven primarily by its vast oil and natural gas reserves, which provide substantial revenue streams. As a result, Qataris enjoy high incomes and often prioritize saving a major portion of their earnings. Additionally, the government plays a crucial role in encouraging saving through policies such as generous subsidies, allowing citizens to allocate more of their income towards savings.
Moreover, cultural and societal norms in Qatar also contribute to its high saving rates. The concept of saving for the future and ensuring financial security is deeply ingrained in Qatari culture. Families often focus on the importance of saving from a young age, fostering a culture of financial prudence and foresight.
1.Djibouti
Gross Savings (% of GDP): 87%
Djibouti, situated in the Horn of Africa, saw an increase in its gross domestic savings rate according to the latest data from the World Bank in 2022, which stood at 87%. This is way higher than the rate of previous years, where the rate typically ranged from 10% to 20%. Despite this increase, Djibouti maintains an average gross domestic product (GDP) per capita (adjusted for purchasing power parity) of $5,893.
The country has also been actively investing in infrastructure projects, particularly in its strategic location as a gateway to the Red Sea and the Indian Ocean. Such investments often necessitate high levels of savings to fund large-scale development initiatives. Moreover, the government’s policies and incentives may have encouraged saving behaviors among its citizens, possibly through tax incentives or savings promotion campaigns.
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