In the second quarter of 2026, the country’s savings rate — defined as gross domestic savings as a percentage of gross domestic product (GDP) — grew 8.6%, reaching P643 billion. Meanwhile, the investment rate was 23.2% of GDP, or P1.74 trillion, resulting in a P1.1-trillion gap. The savings-investment gap (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, resulting for a country to borrow money to fund the gap.
Can domestic savings cover the country’s increasing investment needs?
Philippines Pandemic
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