National savings up 26% in 2022

By Anna Leah Gonzales

June 29, 2023, 6:18 pm

<p>RCBC chief economist Michael Ricafort <em>(file photo)</em></p>

RCBC chief economist Michael Ricafort (file photo)

MANILA – The country's gross national savings went up by 26.6 percent to PHP4.90 trillion last year from PHP4.16 trillion in 2021.
In a report on Thursday, the Philippine Statistics Authority (PSA) said non-financial corporations contributed the biggest savings with PHP4.16 trillion, followed by financial corporations with PHP1.54 trillion.
"The growth in savings for full year 2022 may have to be attributed and correlated with the further reopening of the economy towards greater normalcy with no more large lockdowns since 2022 and policy priority of no more lockdowns, going forward," Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said in a Viber message.
Ricafort said the increased employment, sales, earnings, and other economic activities contributed to higher savings.
"Higher prices and higher interest rates also partly weighed on demand and somewhat partly contributed to higher savings," he said.
Government and households, including non-profit institutions serving households, meanwhile, recorded PHP9 billion and PHP790 billion dissaving during the period.
Ricafort said the dissaving could be attributed to higher prices last year that could result in the tapping of more savings to pay for expenses.
"Going forward, the easing trend in inflation and eventually interest rates, as well as further recovery of the economy from the pandemic, especially hard hit sectors such as tourism, would help support higher disposable incomes and more savings," he said. (PNA)