კონფერენცია

∘ Maya Gogokhia ∘
THE ROLE OF SAVINGS OF THE POPULATION IN THE ECONOMY AND ITS TRANSFORMATION

Summary

Civilization processes have had a direct impact on the population’s understanding of the essence and role of savings. Modern researchers have brought to the forefront the macroeconomic nature of savings.In the modern world, the population has many ways to form savings, and all the diversity of savings formation is dynamic over time .Based on the views of researchers, the article highlights such functions of savings in the economy as: macroeconomic, social, investment, financial, as well as factors influencing the behavior of the population: economic, financial, socio-demographic and psychological. It is noted that from the standpoint of strategic planning of economic goals, an extremely urgent task is to identify the trend of future changes in the savings quota, which has not only a theoretical but also a practical aspect.

It is emphasized that, for various reasons, the institution of accumulating cash savings of the population in foreign countries is more developed and is characterized by different strategies and tools, which is associated with the high level of socio-economic development of these countries and the active transformation of the capital market. The article analyzes the state of savings of the population in Georgia based on various data and studies. According to the National Bank of Georgia (NBG), Today, more than half of Georgia's population are active savers, but a relatively small proportion of them have long-term financial goals. However, a very small number of citizens (more than 10%) keep their savings in bank deposits, while a significant portion keeps them at home or entrust them in the form of cash to family members for safekeeping.

It is worth noting that Georgia has a low level of gross domestic savings, which largely determines the country's economic growth potential.The introduction of the funded pension scheme has also played a role in increasing the population's savings, although women have lower pension contributions than men (both those employed in the private and public sectors).

The importance of promoting investment instruments and stimulating savings through the use of tax incentives is emphasized. Persons participating in the funded scheme must have sufficient information about the beneficiaries and risks of the investment portfolios.

Key words: savings of the population,savings functions, savings quota, gross domestic savings, funded pension scheme.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Maya Gogokhia ∘ THE ROLE OF SAVINGS OF THE POPULATION IN THE ECONOMY AND ITS TRANSFORMATION Summary Civilization processes have had a direct impact on the population’s understanding of the essence and role of savings. Modern researchers have brought to the forefront the macroeconomic nature of savings.In the modern world, the population has many ways to form savings, and all the diversity of savings formation is dynamic over time .Based on the views of researchers, the article highlights such functions of savings in the economy as: macroeconomic, social, investment, financial, as well as factors influencing the behavior of the population: economic, financial, socio-demographic and psychological. It is noted that from the standpoint of strategic planning of economic goals, an extremely urgent task is to identify the trend of future changes in the savings quota, which has not only a theoretical but also a practical aspect. It is emphasized that, for various reasons, the institution of accumulating cash savings of the population in foreign countries is more developed and is characterized by different strategies and tools, which is associated with the high level of socio-economic development of these countries and the active transformation of the capital market. The article analyzes the state of savings of the population in Georgia based on various data and studies. According to the National Bank of Georgia (NBG), Today, more than half of Georgia's population are active savers, but a relatively small proportion of them have long-term financial goals. However, a very small number of citizens (more than 10%) keep their savings in bank deposits, while a significant portion keeps them at home or entrust them in the form of cash to family members for safekeeping. It is worth noting that Georgia has a low level of gross domestic savings, which largely determines the country's economic growth potential.The introduction of the funded pension scheme has also played a role in increasing the population's savings, although women have lower pension contributions than men (both those employed in the private and public sectors). The importance of promoting investment instruments and stimulating savings through the use of tax incentives is emphasized. Persons participating in the funded scheme must have sufficient information about the beneficiaries and risks of the investment portfolios. Key words: savings of the population,savings functions, savings quota, gross domestic savings, funded pension scheme.