The country’s savings rate — defined as gross domestic savings as a percentage of gross domestic product (GDP) — grew to 8.4% in 2025, reaching P2.35 trillion. MeanwhileThe country’s savings rate — defined as gross domestic savings as a percentage of gross domestic product (GDP) — grew to 8.4% in 2025, reaching P2.35 trillion. Meanwhile
Can domestic savings cover the country’s increasing investment needs?
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The country’s savings rate — defined as gross domestic savings as a percentage of gross domestic product (GDP) — grew to 8.4% in 2025, reaching P2.35 trillion. Meanwhile, the investment rate was 22.3% of GDP, or P6.25 trillion, resulting in a P3.90-trillion gap. The savings-investment (S-I) gap — the difference between gross domestic savings and gross capital formation — shows a country’s ability to finance its overall investment needs. An S-I deficit occurs when a country’s investment expenditures exceed its savings, forcing a country to borrow money to fund the gap.
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