Gross savings jump to P6.6 trillion in 2023

MANILA, Philippines — Total gross savings of the Philippines jumped by 35 percent to P6.6 trillion last year from P4.89 trillion in 2022, latest data from the Philippine Statistics Authority (PSA) showed.

Gross savings represent income to be used for consumption or investment minus expenditures.

In 2021, the country’s gross savings amounted to just P3.87 trillion.

Oikonomia Advisory & Research Inc. president and chief economist John Paolo Rivera said gross savings increased due to reduced consumption driven by high interest rates.

“People would rather put their money in the banks than spend it,” he said.

He said the government also calibrated spending with some agencies having low budget utilization.

After three years of posting negative levels of savings, the PSA said households including non-profit institutions serving households and the government posted savings last year.

In particular, households had savings amounting to P219.41 billion, while the government had P152.26 billion.

Non-financial corporations accounted for the highest gross savings with P4.52 trillion in 2023.

This was followed by financial corporations, which had P1.71 trillion savings.

Last year, the country’s gross national disposable income was at P28.67 trillion, up by 15 percent.