Fewer Than 20% of
Argentine Families Save
Money
Fewer than 20 percent of
Argentine families have
the habit of saving
money, a report
published Sunday by an
Argentine market
foundation shows.
Low deposits, caused by
growing inflation, less
credit from banks and
the prevalence of
excessive consumption
will hamper the
sustainable growth of
the Argentine economy,
according to economists.
Only some 3.2 percent of
families had bank
deposits during 2002 to
2005, with the lowest
level of 2.9 percent in
2004, the report said.
The number of families
saving money has
decreased since 2001,
when a financial crisis
swept through Argentina,
during which the
government froze
deposits and people lost
trust in banks, while
growing inflation in
recent years has
increased people's
consumption.
The number of families
saving money increased
to 6.2 percent in2006
and 19.8 percent last
year, but was still far
behind that of other
developing countries,
according to the
foundation.
Economists said such low
deposits would affect
domestic investment and
the lack of investment
is a big problem for
Argentina's sustainable
growth.
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