Filipinos saved more in 2024 as incomes grew, spending moderated, and inflation eased — pushing the country’s gross saving to a record P7.7 trillion, the Philippine Statistics Authority (PSA) said on Thursday.
The surge — 16.7 percent from 2023 — highlights a shift toward financial caution amid global uncertainty and rising economic awareness.
The PSA said that all four institutional sectors — non-financial and financial corporations, households, and government — registered positive savings in 2024, contributing to the overall expansion.
Non-financial corporations led the way with P4.96 trillion, followed by financial corporations with P1.98 trillion, households and nonprofits at P393.3 billion, and the general government with P365 billion in gross saving.
Gross saving is defined as gross disposable income less final consumption expenditure — essentially what’s left after income is earned and expenses are paid.
While this year’s growth in savings was slower than the 35 percent spike seen in 2023, RCBC Chief Economist Michael Ricafort noted that it far outpaced the 5.7 percent recorded growth in GDP.
“This could be a function of continued income growth, more conservative spending, and weaker investment activity, especially toward the end of 2024,” Ricafort said.
He pointed to global headwinds — including market volatility, the return of Donald Trump to the White House in November 2024, and fears of renewed trade wars and protectionist policies — as factors prompting businesses and consumers alike to pull back and preserve liquidity.
Easing inflation throughout the year also contributed to the savings uptrend. As prices stabilized, 22 disposable incomes for households, firms, and government agencies saw an effective boost.
Full-year 2024 inflation averaged 3.2 percent, the slowest since 2021, and the mid-range of the government’s target range of 2 and 4 percent.
“Mathematically, lower inflation increases the residual amount that can be saved,” Ricafort said. “But beyond that, the trend also reflects a maturing financial culture — increased literacy and deeper inclusion are helping generate surplus funds for investment and growth.”
Gross national disposable income, which forms the basis for computing national savings, rose 10.5 percent year-on-year to P31.68 trillion in 2024, the PSA said.
Major contributors to gross national disposable income were compensation of employees, with P12.822 trillion in 2024, up from the prior year’s P11.446 trillion, as well as gross operating surplus from resident producers, with P15.072 trillion, up from P13.956 trillion in 2023.
On the expenditure side, household final consumption expenditure amounted to P20.138 trillion in 2024, while government final consumption expenditure reached P3.837 trillion.
Both went up from the 2023 figures of P18.604 trillion and P3.458 trillion, respectively.
