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Can domestic savings cover the country’s increasing investment needs? - BusinessWorld Online

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In the second quarter of 2022, the country’s savings rate — gross domestic savings as share of gross domestic product — reached 13.7% (P685 billion) while investment rate stood at 27.7% of GDP (P1.383 trillion), resulting in a P699 billion deficit. READ:

An S-I deficit happens when a country’s investment expenditures exceed its savings, leading it to borrow to fund the gap.

In the second quarter of 2022, the country’s savings rate — gross domestic savings as share of gross domestic product — reached 13.7% while investment rate stood at 27.7% of GDP , resulting in a P699 billion deficit. This was the widest gap in 10 quarters or since the P747-billion deficit in the final three months of 2019.

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귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

Future borrowing will finance this gap.

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