Variance

2017 2018
(in Billion ₱) (in Billion ₱) 2018 vs. 2017 % Increase/
(in Billion ₱) Decrease

Gross Savings 3,866,000,000 4,232,000,000 366,000,000 9.47% Increase

Capital Transfers 100,134,000,000 454,768,000,000 354,634,000,000 35.39% Increase

Capital
Accumulation 3,973,000,000 4,695,000,000 722,000,000 18.17% Increase
Net Lending (+)/
Borrowing (-) * 104,000,000,000 459,000,000,000 355,000,000,000 34.13% Increase

1. Complete the table below

2. Answer the following questions

Sector Justifications cited on the

1. Which sector has the biggest
contribution to the growth of
the country’s savings?
2. Which sector has the largest
net borrowings?
report
The domestic sectors
Non-Financial Sector generated more saving
during the period, except for
the financial sector, resulting
in higher national saving in
2018.3 The non-financial
corporations was the top
saver due to the profitable
operations of key players in
the sector. The general
government, the second
largest saver during the year,
was the biggest contributor
to the growth of the
country’s gross saving on the
back of enhanced collection
of taxes and
premium/member
contributions.4,5
General Government Among the sectors of the
domestic economy, the
general government was the
 largest net borrower,
following the steep rise in its
capital accumulation amid its
higher spending on public
infrastructure.

3. Identify the reason/s for the capital accumulation increase of the following domestic sectors in
the economy:

Domestic Sectors Reason/s for Capital Accumulation Increase

Non-Financial Sector (NFC) strong construction activities of the NFCs
during the year.
General Government (GG) NG increased its capital spending. In terms of
contribution to the growth of the country’s
capital accumulation
Household investment in real assets also surged due to
higher residential building construction
activities
Financial Sector OFCs scaled up their investments in real
properties.