Economist Jonathan Ravelas backed Bangko Sentral ng Pilipinas Governor Eli Remolona Jr.’s call for Filipinos to save more as the peso comes under pressure against the U.S. dollar, saying stronger household savings could help build economic resilience.
Ravelas, senior adviser at Reyes Tacandong & Co., said higher savings provide domestic capital for investment and give the economy a bigger cushion against shocks.
“BSP Governor Eli Remolona is right. Saving is not just a personal financial habit, it’s an economic strategy. A nation that saves more builds resilience, creates capital for investment, and is better prepared for shocks,” Ravelas said.
Remolona recently told senators that the Philippines needed to raise its savings rate, pointing to what he described as the country’s consumption culture.
“Medyo mahirap sabihin ‘to, Senator, pero mayabang tayo eh. May consumption culture ang tawag,” the BSP chief said.
Ravelas, however, said higher savings alone would not be enough to strengthen the economy.
“Households must also spend wisely, invest in education and skills, support local businesses, and hold institutions accountable,” he said.
“Spend wisely, save consistently, invest in skills, support local enterprise, and demand better governance. When millions of households do that together, it becomes a powerful economic force,” Ravelas added.
He said stronger household finances and better economic choices could collectively have an impact beyond individual families.
“The path to a stronger economy starts not only in boardrooms and government offices, but around every Filipino family’s dining table,” Ravelas said.
