PHL gov’t debt hits record ₱14.10 trillion as of May
This means the country’s debts increased by 1.3% or ₱185.40 billion from April due to the net issuance of domestic and external debt, as well as the peso’s depreciation against the US dollar.
Most of the debt stock or 68% was sourced domestically, while 32% were external borrowings, the treasury bureau said.
Meanwhile, the country’s external or foreign debt amounted to ₱4.51 trillion, up 1.2% or ₱54.73 billion from the previous month, the bureau said, mainly driven by external loans.
The Philippines’ sovereign debt ballooned during the pandemic as the administration of former President Rodrigo Duterte borrowed heavily to fund its COVID-19 response. Duterte’s ambitious infrastructure push also contributed to the higher debt levels.
Economic managers, however, have said that the debt level remains manageable as economic growth can outpace the cost of servicing debt.
The government earlier said its debt-to-GDP ratio improved to 60.9 percent in 2022
