The increase in residents’ savings can have a series of impacts on the economy, including:

1. Reduction in consumer spending: The increase in residents’ savings means that they have reduced their consumption expenditure. If most people do this, reduced consumer spending could lead to slower economic growth.

2. Reducing investment demand: An increase in household savings may lead to a decrease in investment demand, because capital supply increases while demand decreases. This may cause businesses to invest less, thus reducing productivity and employment opportunities.

3. Increase bank reserves: Residents’ savings increase, and banks can use these deposits to increase reserves. Bank reserves can increase loan disbursement, thereby increasing investment and consumption.

4. Increase lending rates: If bank reserves increase but borrowing demand does not increase, banks may increase lending rates to encourage borrowing. This could lead to businesses and individuals refraining from borrowing, thus lowering investment and consumption.

Overall, an increase in household savings may have a negative impact on the economy, especially in the short term. However, in the long run, household savings can also fund investment and economic growth and promote capital accumulation.