Health of the Economy

Gross Domestic Savings (GDS) and Gross Domestic Investment (GDI) are the parameters to study the health of the economy.

• Gross Domestic Savings = Gross Domestic Product - The Final Consumption
  
  Gross Domestic Investment = Gross Domestic Savings + Net capital flow from abroad (FDI + FII + Remittance - Outflow) + Borrowings.
  
  
• Gross Domestic Investment is also called the Gross Capital Formation. In a developing economy, investment is generally more than savings.
  
  
• Gross Domestic Savings is estimated by dividing the economy into the private corporate sector, the public sector and the household sector.
  
  Household sector accounts for about 75 % of GDS followed by private corporate sector which contributes about 20% and public sector accounts for 5%.
  
  
• The Gross Domestic Savings and the Gross Capital Formation are worked out as a percentage of GDP at market price and current prices.