FIGURE 20-1 The Savings–Investment Spending Identity in Open Economies: The United States and Japan, 2007

U.S. investment spending in 2007 (equal to 18.8% of GDP) was financed by a combination of private savings (15.7% of GDP) and a capital inflow (5.2% of GDP), which was partially offset by a government budget deficit (−1.6% of GDP). Japanese investment spending in 2007 was higher as a percentage of GDP (23.8%). It was financed by a higher level of private savings as a percentage of GDP (32.1%), which was offset by both a capital outflow (−4.9% of GDP) and a relatively high government budget deficit (−3.4% of GDP).

Source: Bureau of Economic Analysis; OECD.