The Philippines’ outstanding debt climbed by 9.8 percent to P16.05 trillion in 2024, up from P14.62 trillion in 2023, primarily due to increased government borrowings to cover the budget deficit and the impact of a stronger US dollar.
Despite the surge, the latest figure remained slightly below the record high of P16.09 trillion recorded in November 2024, according to data from the Bureau of the Treasury (BTr).
Since assuming office in July 2022, the Marcos administration has added P3.25 trillion to the country’s total debt stock.
“The year-on-year increase in the debt stock is primarily attributed to the P1.31 trillion net issuance of debt instruments in line with the government’s deficit program, as well as the P208.73 billion valuation effect of US dollar strengthening,” the BTr reported.
However, favorable third-currency movements helped reduce total obligations by P80.74 billion.
Domestic debt remained the dominant component of the country’s debt portfolio, accounting for 68.1 percent of the total in 2024, while external borrowings made up 31.9 percent.
Domestic debt rose by 9.1 percent to P10.93 trillion, compared to P10.02 trillion in 2023. It also increased by 0.1 percent from P10.92 trillion in the previous month.
External debt grew by 11.4 percent year-on-year to P5.12 trillion but dipped by 0.9% from P5.17 trillion in November 2024.
Meanwhile, total guaranteed debt obligations declined by 0.8% to P346.66 billion due to net repayments of P5.25 billion in domestic guarantees and P66.63 billion in external guarantees.
With the economy posting a 5.6-percent GDP growth in 2024, the country’s debt-to-GDP ratio stood at 60.7 percent, surpassing the internationally accepted threshold of 60 percent.
This was higher than the 60.2 percent recorded in 2023 but slightly lower than the 61.3% in the previous quarter.
It was also marginally above the 60.6 percent target set under the government’s medium-term fiscal framework.
Despite this, the BTr highlighted that the minimal deviation from targets reflects effective cash and debt management strategies, including proactive external debt issuance amid volatile exchange rate conditions.
Reducing the debt-to-GDP ratio would require economic growth to outpace the country’s borrowings, ensuring long-term fiscal sustainability.
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