Overview

• Goldman projects household financial savings to average about 13% of GDP over the next ten years, up from 11.6% in the previous decade.
• More than $4 trillion is expected to go to insurance, pensions and retirement products, roughly $3.5 trillion to bank deposits, and about $0.8 trillion to equities and mutual funds.
• The inflows are expected to provide a stable domestic funding base for corporate capital expenditure without materially widening the current account deficit.
• Higher financial savings are seen supporting long-duration bond markets, helping anchor long-end sovereign yields and enabling longer-tenor quasi-sovereign and corporate bonds for infrastructure.
• Goldman expects broader retail participation in capital markets and rising demand for wealth management, with outcomes contingent on income growth, inflation, interest rates, risk appetite and market access.