Pinoys expected to rebuild savings as revenge spending wanes: economist

More Filipinos are expected to build up their savings this year as the revenge spending effect from pentup demand during the pandemic wanes, an economist said.

Currently, about 30 percent of households are setting aside funds for savings, which is seen to grow to about 38 percent, ING Bank Senior Economist Nicholas Mapa said.

“As we get on, as the world normalizes, we are expecting households to go back away from spending and back to that savings behavior... If this trend continues, this should tell us that households are getting past the splurge and going back to normal household savings,” Mapa said.

“A lot of consumer revenge spending might have been funded by peo- ple dipping into their savings account, but in 2023, some of that households will likely rebuild some of that savings back up to pre-COVID levels,” he added.

Inflation, which was at 8.7 percent in January, is still expected to peak but Mapa said the bigger concern is that it could remain higher for longer or that its deceleration would be slow.

2023 budget to make economic transformation ‘inclusive’: DBM

The PHP5.268-trillion national budget for 2023 contains line items that will help achieve the Marcos administration’s bid for an “inclusive and sustainable” economic transformation, Budget Secretary Amenah Pangandaman said Wednesday.

Pangandaman issued the statement, as she called on the government leaders to lead with empathy to respond to the needs of the people.

awa at nagmamalasakit sa mga Pilipino (a budget that truly empathizes with, understands and cares for the Filipinos),” she added.

Pangandaman said the 2023 budget supports the Marcos administration’s eight-point Socioeconomic Agenda and is designed to cater to the objectives of the Philippine Development Plan (PDP) 2023 to 2028.

He said the Bangko Sentral ng Pilipinas could still raise the benchmark interest rate by 25 to 50 basis points. However, the central bank said a non-monetary policy approach must be used by the government, such as addressing supply constraints, to make a dent to the heated inflation.

The BSP’s next monetary policy-setting meeting is scheduled in May.

“As leaders in government, it is incumbent upon us to lead with empathy. We must truly consider and respond to the needs of our localities,” Pangandaman said in a message at the League of Municipalities General Assembly at the Manila Hotel.

“With empathy for the needs of our people, the Department of Budget and Management prepared a national budget for economic transformation that is truly inclusive and sustainable — budget na tunay na dumaramay, nakaka-un-

She added that this year’s budget puts a premium on strengthening social protection, ensuring food security and establishing livable communities.

She also reiterated that the DBM would support the local government units (LGUs) in the process of the full devolution of functions.

Executive Order 138, issued by former President Rodrigo Duterte in June 2021, orders the full devolution of certain functions of the executive branch of the government to LGUs, in line with the Supreme