Gross national saving (ANB)

Gross national saving (ANB) is the sum of public saving and private saving. It indicates the amount of resources that a country has to invest in itself or in the rest of the world.

In other words, gross national saving is the total amount of saving that is generated in a country over a period of time. This period is usually one year.

Furthermore, when calculated based on a flow variable, it is also a flow variable. In other words, gross national saving refers to a period and only to that period.

Gross national saving formula (ANB)

Gross national saving is also defined as the gross national product (GNP) minus the consumption (it is the most used formula):

Gross national saving (ANB) = GNP - C

Being GNP = GDP + NRN - ERR

• GDP = Gross domestic product.
• RNN = Income obtained by nationals abroad.
• RNE = Income obtained by foreigners in national territory.

It is very common to calculate gross savings as a ratio to GDP. This ratio measures gross national income minus total consumption plus net transfers.

Interpretation of gross national saving (ANB)

Gross national saving allows us to see the total balance that economic agents allocate to saving and is an economic indicator of the functioning of the economy, since it allows us to calculate an average saving per person and compare it with the rest of the countries. In addition, it allows to see the degree of awareness of a society in the face of possible future contingencies. In turn, it indicates the amount of resources that a country can allocate to building a solid welfare state and making productive investments both in the country and abroad.

Gross national saving is compared with the total consumption of a country to see how people plan their economic situation and to analyze its impact on economic activity, since an excess of saving would not be good for a country because it would curb consumption and, therefore, the productive circuit of that economy and of the businesses and productive companies that generate greater production and that contribute to the formation of employment.

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