Field: Finances and financial capital

Subfield: Financial capital

Details:

Saving is considered one of the fundamental engines of a nation’s development. Without capital accumulation, entrepreneurial processes could not have reached the complexity they have today. Saving reflects the sacrifice of current consumption for a future bigger consumption. Gross savings in a society directly influence the cost of capital (interest): when internal savings are rare, capital is rare, the interest has a natural tendency to increase, investments are inhibited, the economic system generates fewer jobs, etc. The indicator reflects the gross savings relative to GDP. At a distance from the European mean for many years (in 2000 the gross savings in Romania were 14.5% of GDP, with the European mean at over 24%), since 2005 Romania has recovered the difference and is now above average (in 2015 gross savings in Romania were at 25%, while the EU average was 23%). However, it is important to note that only a small percentage of the population is saving, most deposits having a very low value, with the largest deposits in the hands of a very low number of depositors.