Philippines' higher debt-to-GDP ratio not a cause for concern: Palace
ADVERTISEMENT
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!
Philippines' higher debt-to-GDP ratio not a cause for concern: Palace
MANILA -- Malacañang on Monday downplayed concerns about the increase in the Philippines’ debt to gross domestic product (GDP) ratio after the number spiked to 62 percent in the first quarter of 2025, saying that it is still well-within the internationally accepted threshold.
MANILA -- Malacañang on Monday downplayed concerns about the increase in the Philippines’ debt to gross domestic product (GDP) ratio after the number spiked to 62 percent in the first quarter of 2025, saying that it is still well-within the internationally accepted threshold.
The Philippines’ debt-to-GDP ratio climbed to 62 percent in March 2025 from 60.7 percent in the previous quarter.
The Philippines’ debt-to-GDP ratio climbed to 62 percent in March 2025 from 60.7 percent in the previous quarter.
“Ito po — ayon sa ating Department of Finance [DOF] — ay sustainable. Nasa sustainable level po tayo dahil po 70 percent po ang international threshold for the debt-to-GDP ratio,” Communications Undersecretary Claire Castro said in a Palace briefing.
“Ito po — ayon sa ating Department of Finance [DOF] — ay sustainable. Nasa sustainable level po tayo dahil po 70 percent po ang international threshold for the debt-to-GDP ratio,” Communications Undersecretary Claire Castro said in a Palace briefing.
“Ngayon mukhang tumaas nang kaunti at still nandoon pa rin po tayo sa range, it’s supposed to be below 70 percent,” she said.
“Ngayon mukhang tumaas nang kaunti at still nandoon pa rin po tayo sa range, it’s supposed to be below 70 percent,” she said.
ADVERTISEMENT
The additional loans that the government incurred have been used for “growth enhancing investments” such as projects in “infrastructure, education, agriculture, health and social services,” Castro said.
The additional loans that the government incurred have been used for “growth enhancing investments” such as projects in “infrastructure, education, agriculture, health and social services,” Castro said.
“Makikita po natin kung ano ang mga itinulong ng Pangulo at ng pamahalaan sa mga farmers natin, sa mga mangingisda po natin, pati po itong pagpapataas din po ng mga ayuda at tulong sa ating mga kababayan,” she said.
“Makikita po natin kung ano ang mga itinulong ng Pangulo at ng pamahalaan sa mga farmers natin, sa mga mangingisda po natin, pati po itong pagpapataas din po ng mga ayuda at tulong sa ating mga kababayan,” she said.
The World Bank and the International Monetary Fund set the threshold at 70 percent in 2021, but the European Union’s Stability and Growth Pact requires public debt must not exceed 60 percent of GDP.
The World Bank and the International Monetary Fund set the threshold at 70 percent in 2021, but the European Union’s Stability and Growth Pact requires public debt must not exceed 60 percent of GDP.
“Different criteria could sow the seed of confusion, but at the same time indicates how difficult it is to come up with a unified criterion governing the fiscal policy space,” according to an article from the Asian Development Bank (ADB).
“Different criteria could sow the seed of confusion, but at the same time indicates how difficult it is to come up with a unified criterion governing the fiscal policy space,” according to an article from the Asian Development Bank (ADB).
As of 2020, the average debt to GDP ratio in emerging Asian economies is at 63.5 percent, according to data from the ADB.
As of 2020, the average debt to GDP ratio in emerging Asian economies is at 63.5 percent, according to data from the ADB.
Economic managers have said that the country's debt is sustainable as long as economic growth outpaces the rise in borrowings.
Economic managers have said that the country's debt is sustainable as long as economic growth outpaces the rise in borrowings.
The Philippines' national debt edged up to P16.92 trillion at the end of May from P16.75 trillion seen in April, as the country continued to borrow more to finance its fiscal deficit, according to the Bureau of Treasury. Foreign debt, however, had declined in May and April as the peso's strength versus the US dollar trimmed the value of the dollar-denominated loans.
The Philippines' national debt edged up to P16.92 trillion at the end of May from P16.75 trillion seen in April, as the country continued to borrow more to finance its fiscal deficit, according to the Bureau of Treasury. Foreign debt, however, had declined in May and April as the peso's strength versus the US dollar trimmed the value of the dollar-denominated loans.
ADVERTISEMENT
ADVERTISEMENT
