Answer to Question #307014 in Macroeconomics for Sibiya

Question

Why are savings important in an economy

Answer 1

Saving is very essential for ecomic growth of any country ,as it is related to the investment.

Savings basically stimulates the investments, productions and employment and also generates sustainable growth of economy. Those countries which are at high rates of savings had a faster economic growth as compared to the lower one because higher rates help the economy to produce more goods and services which tends to the country's economic growth.