Household Savings and Income Distribution in Mexico

Following the 1994 financial crisis, the rate of saving of the Mexican economy fell from 21.7 percent to 19.8 percent of GDP. The decline was associated with a reduction in the rate of external saving from 6.9 to 0.5 percent between 1994 and 1995. The overall reduction was not more dramatic because it was almost fully compensated by an increase in private saving from 11.3 percent to 15 percent of GDP during these years.