Definition

In the national accounts, household savings are estimated by subtracting household consumption expenditure from household disposable income plus the change in net equity of households in pension funds (since this component is also a determinant of household disposable income but with an opposite sign).

Household disposable income consists essentially of income from employment and from the operation of unincorporated enterprises, plus receipts of interests, dividends and social benefits minus payments of income taxes, interest and social security contributions. Note that enterprise income includes imputed rents paid by owner-occupiers of dwellings.

Household consumption expenditure consists mainly of cash outlays for consumer goods and services. It also includes the imputed expenditures that owner occupiers pay, as occupiers, to themselves as owners of their dwellings and the production of goods such as agricultural products for own-final use.

Household saving rates may be measured on either a net or a gross basis. The net saving rates shown here are measured after deducting consumption of fixed capital (depreciation), in respect of assets used in enterprises operated by households and in respect of owner-occupied dwellings. This consumption of fixes capital is deducted from both savings and the disposable income of households.

Households include households plus non-profit institutions serving households. The household saving rate is calculated as the ratio of household savings to household disposable income (plus the change in net equity of households in pension funds).

For more statistics on economic, environmental and social issues visit online the OECD Factbook 2010.