Explainer: Why your savings is important for economic growth
More savings, higher growth. Source: Stears Business

Put some money aside today. Nigeria will thank you for it.

When people save, the economy grows. Here's how it works: people keep their money in banks so that others who need them for businesses or some form of investments can use them to create more wealth and repay with interest.

As a country, the more people save, the more money others have to expand their products and services. When you think of the economy, it's easy to think only about several sectors: agriculture, manufacturing and services and how they all contribute to the economy's growth.

But we can also look at the economy through a different lens. Let's do this using one of the most famous equations in economics.

 

How the economy works 

GDP = Consumption + Investment + Government spending + (Exports - Imports)

A country's total output can be consumed by individuals (consumption) or used to expand existing businesses or create

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Gbemisola Alonge

Gbemisola Alonge

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