Manila: The total gross savings of the Philippines surged by 16.6 percent, reaching PHP7.70 trillion in 2024, up from PHP6.60 trillion in the previous year, according to the latest data released by the Philippine Statistics Authority (PSA). Gross savings are calculated as the difference between gross disposable income and final consumption expenditure.

According to Philippines News Agency, the PSA data highlighted that among the four institutional sectors, non-financial corporations led with the highest savings, amounting to PHP4.96 trillion. Financial corporations came next, with gross savings of PHP1.98 trillion, followed by households and non-profit institutions serving households, which saved PHP393.31 billion. The general government recorded gross savings of PHP364.98 billion.

Rizal Commercial Banking Corp. chief economist Michael Ricafort commented on the increase, attributing it to continuous income growth, reduced spending and investments, and some market volatility towards the end of 2024. Ricafort also noted that the easing trend in inflation throughout the year contributed to an increase in disposable income for businesses, consumers, the government, and other institutions. This relative increase in disposable income, coupled with faster growth in sales and the overall economy, mathematically boosted the country's savings.