In the long term, economic growth can only happen if there is investment in an economy. The investment allows the economy's production possibilities curve to move outward. This happens because firms can, for example, buy new machinery or develop new technologies when they have money to invest. These new things allow them to be more productive.
Savings are a very good source of money to be used by companies to do this kind of investment. If the people of a country can save sufficiently, the country's firms will not be dependent on foreign sources of investment.
So the relationship is that saving provides a source of money to invest. Investment allows for firms to buy new capital goods. This leads to economic growth.
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