Signs of a Declining Economy

From an economic standpoint, there are several signs of a declining economy. Mounting debt and decreasing savings rate are among them.

It is interesting to note that while the household savings rate in China and India has increased, Korea’s has fallen as mentioned in a previous post. China’s household savings rate reached 28% in 2008, consistently rising from 1991.

As for sovereign debt, Japan’s sovereign debt rose to a record 883 trillion yen as the fiscal year ended in March. I’ll do a post on Korea’s deficit figure in March.

We all know sovereign concerns in advanced economies including the U.S and euro zone countries.