Moreover, the resolve by government to adhere to sound fiscal policies was reflected in a decline in the net dissaving by general government as a ratio of gross domestic product from 5% in 1997 to 3% in the first half of 1999. The corporate sector succeeded in lifting retained earnings by more than the growth in production over the same period.
As a consequence, the ratio of gross saving to gross domestic product rose somewhat from a low of 13% in the fourth quarter of 1998 to 15% in the first half of 1999. Although this is a welcome change in the declining trend of the savings ratio, it is still well below the levels needed for sustained higher economic growth.