The Market Monitor Minding the Nation's Business
The country’s total gross savings climbed by 16.6 percent to P7.70 trillion in 2024, up from P6.60 trillion the previous year, according to the latest figures released by the Philippine Statistics Authority (PSA).
Gross savings represent the difference between gross disposable income and final consumption expenditure.
Among the four major institutional sectors, non-financial corporations accounted for the bulk of the savings with P4.96 trillion. Financial corporations followed with P1.98 trillion in gross savings, while households—including non-profit institutions serving households—contributed P393.31 billion. The general government sector posted P364.98 billion in savings.
Commenting on the development, Rizal Commercial Banking Corp. chief economist Michael Ricafort pointed to several contributing factors such as steady income growth, restrained spending and investments, and market uncertainties in the latter part of 2024.
“Easing trend in inflation in 2024 and in recent months also helped increase the disposable income of businesses, consumers, government, and other institutions in the country relative to the faster growth in sales, income, and in the overall economy, thereby mathematically increasing the savings amount in the country,” Ricafort said.