Individual savings and economic growth in Uganda. a case study of Masaka municipality

Abstract

This research was basically focused on Individual Savings and Economic Growth. This study sought to investigate the relationship between individual savings and the economic growth in Uganda. The research was based on the objectives; to study the relationship between the non financial savings by individuals and economic growth in Uganda, to analyze the relationship between informal financial savings by individuals and economic growth in Uganda, to establish the relationship between formal financial savings by individuals and economic growth in Uganda, and to assess the relationship between semi-formal financial savings by individuals and economic growth in Uganda. The researcher used survey deign and used quantitative approach under which the responses from respondents were coded numerically for easy analysis of the relationship between Individual Savings and Economic Growth. The source of data was primary data, closed ended questionnaires were used to collect data from respondents who were residents in Masaka Municipality. The research findindings were presented in tables, pie charts and bar graphs. These findings indicated that there is a strong relationship between individual savings and economic growth in that when individual savings increase it is highly likely that the economic growth of an economy will increase. Basing on the findings individual savings were found to have improved the welfare of the people of Masaka Municipality as well as their financial status, this was an indicator that if Uganda as a country mobilizes its population to embrace savings starting at an individual level, there will be a great increase in its economic growth. Therefore the government, policy makers and financial institutions should seek for ways of promoting savings.