THE country’s total gross savings rose 9.4 percent to P8.4 trillion in 2025 from P7.68 trillion the previous year, as households and businesses set aside more funds amid market volatility and political uncertainty, the Philippine Statistics Authority reported.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the increase to slower investment activity, reduced government infrastructure spending and weaker economic growth.
He cited national government underspending on infrastructure — particularly amid anomalous flood control projects late in 2025 — and higher US tariffs as key factors.
“More money funneled to savings, as a matter of prudence, while adopting a wait-and-see attitude by some investors, both local and foreign, amid the political noises,” Ricafort said.
Nonfinancial corporations held the largest share at P5.16 trillion, followed by financial firms at P2.29 trillion, and households and nonprofits at P973.14 billion.
Government posted a dissaving position of P23.61 billion, meaning expenditures exceeded disposable income.
The country’s gross national disposable income grew 7.5 percent to P34.04 trillion.
With gross capital formation at P6.20 trillion and savings exceeding investment requirements, the economy recorded a net lending position of P2.20 trillion — meaning it generated more savings than needed for domestic investment, with the surplus available for lending abroad.
