Saving

Saving in economics means that a country is abstaining from consumption. Households may refrain from consuming and the public sector may cut back on their spending to increase savings in the economy.

Saving means that the economy has greater opportunities for investments and exports. Savings can be defined using the formula below.

Savings = I + (X-M)

where
I = Investment
X = Exports
M = Imports

Financial savings means that a country is abstaining from consumption and investments. Financial saving is exports minus imports. Financial savings can be defined according to the following formula:

Financial savings = (X-M)

where
X = Exports
M = Imports