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

In the third quarter, gross domestic savings reached P352 billion while gross capital formation amounted P1.47 trillion, resulting in a P1.12-trillion gap. The savings-investment gap (S-I) 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.