By LEE C. CHIPONGIAN
Despite the challenges in 2019, the Philippines has managed to increase its gross saving in 2019 by 9.5 percent to ₱4.23 trillion compared to ₱3.86 trillion in the previous year, the Bangko Sentral ng Pilipinas (BSP) reported over the weekend.
The BSP cited the growth despite the ongoing trade war between the US and China, the volatile crude oil prices in 2018, and the high inflation and weak peso at the time.
“The solid growth in the national saving came on the back of the country’s sound macroeconomic fundamentals,” said the BSP.
The BSP added that the capital accumulation of the domestic economy rose by 18.2 percent to ₱4.69 trillion in 2018. “This was due mainly to the construction activities of private non-financial corporations and the robust infrastructure spending of the National Government.”
The domestic economy’s net borrowing increased to ₱458.6 billion in 2018 compared to ₱104.1 billion in 2017 as growth in capital accumulation outpaced the growth in saving.
The BSP explained that the domestic sectors – except for the financial sector – reported more saving and uplifted the national saving in 2018. The non-financial corporations sector with ₱2.37 trillion was still the biggest saver due to profitable operations of core industries, said the BSP.
The government, which is the biggest contributor to gross saving, reported ₱781.3 billion in 2018 on the back of higher tax revenue collections and premium/member contributions.
As for the household sector, the BSP said the higher compensation of employees as well as inflows from overseas Filipinos contributed ₱755.3 billion to the national saving.
“The broad-based sectoral increase in real investments boosted the capital accumulation of the domestic economy,” said the BSP.
The capital accumulation of the non-financial corporations sector in 2018 also increased to ₱2.58 trillion while the general government’s real investments stood at ₱1.18 trillion. The household sector, in the meantime, had ₱878.1 billion due to residential construction activities while the real investments by the financial corporations sector was at ₱51.7 billion.