|Gross Saving by Institutional Sector||€million|
|Non-Financial Corporations S.11||Financial Corporations S.12||General Government S.13||Households incl. NPISH S.14 & S.15|
Preliminary estimates for 2017 indicate that gross saving (B.8g) for the economy as a whole increased by €9,634m to €108,780m, compared to €99,146m in 2016 (see Summary Table). All sectors increased their gross saving, continuing a recent trend, as illustrated in Figure 1.
For households, gross saving went from €6,639m in 2016 to €8,846m in 2017. This change is driven by households' gross income (B.6g, up 5.3%) rising faster than expenditure on goods and services (P.3, up 3.2%). The gross saving ratio of households, which expresses saving as a percentage of total disposable income (B.6g + D.8), increased from 6.8% in 2016 to 8.6% in 2017 (see Background Notes).
In the last quarter of 2017, the seasonally adjusted saving ratio was 8.1%, down from 8.7% in quarter 3.
Increase in Gross Saving of Government (S.13)
The gross saving of Government amounted to €4,887m in 2017, an improvement of €1,841m on the 2016 saving of €3,046m. An increase of €1,740m in income and corporation taxes (D.5) was the biggest contributor to the change in gross saving.
Capital spending by government continued to exceed gross saving in 2017, leaving a net borrowing requirement (B.9) of €1,208m. This borrowing was down from €1,979m the previous year, and 2017 was the seventh successive year of reduced borrowing since the peak of €53,709m in 2010.
Non-Financial (S.11) and Financial (S.12) Corporations
The gross saving of non-financial corporations was €91,893m in 2017 – an increase of €5,333m compared with the 2016 figure of €86,560m. Their profits (B.2g) increased by €11,943m and their income flowing in from subsidiaries abroad (D.42 + D.43) increased by €2,546m while their payments flowing out to parent companies abroad (D.42 + D.43) only increased by €8,333m. While gross saving increased by €5,333m, after the capital account items the net lending increased by just €3,618m, from €6,595m to €10,213m. The sharp decline in capital investment (P.51g, down €19,551m), due to reduced intellectual property purchases from abroad, was more than offset in the capital account by a large increase in imports of goodwill and marketing assets (part of NP, up €21,075m).
Financial corporations had gross saving of €3,059m in 2017, up from €2,812m the previous year. The continued growth of the investment fund sector is reflected in payments of 'other investment income' (D.44) growing by €5,485m in the year to €41,043m, more than double what it was four years ago.
Rest of World Sector (S.2)
The net borrowing (B.9) by the rest of the world from Ireland amounted to €10,218m in 2017, compared with a net borrowing of €4,128m in 2016. This net borrowing is the equal and opposite of the total Irish economy's lending, and the changes are dominated by the large transactions of the non-financial corporations.