Household savings play an important role in financing private and public investment.
The chart below shows that the proportion of income that households save varies considerably across the European Union. However, technical factors which affect how saving rates are calculated, and other factors such as the size of the black economy, mean that the differences may be somewhat less than they appear.
From the data we can also see that although converging income levels in the EU have led to converging consumptions rates, it has not had the same effect on household saving rates.
For more information on why household saving rates differ so much, read the full report.