Philippine national debt rises to P17.27 trillion in June

MANILA, August 3 ------ The Philippines' sovereign debt climbed to P17.27 trillion at the end of June, the Bureau of Treasury said. This was higher by P348 billion or up 2 percent compared to the level in May, Treasury said, noting the "strong investor demand for government securities."

Compared to June 2024, the national debt increased by P1.78 trillion or 11.5 percent. Meanwhile, compared to the start of the year, the debt increased by P1.2 trillion or 7.6 percent. In terms of share, domestic debt continued to make up the bulk of the national debt, at P11.95 trillion or 69.2 percent of the total debt. Foreign debt meanwhile was at P4.91 trillion or 30.8 percent of the total. "This strategy is consistent with the government’s goal to boost the local capital market while lowering foreign exchange risks and building investor trust in Philippine-issued securities," Treasury said.

Some economists have expressed concern over the country's rising debt, but economic managers said the increasing debt was not a cause for worry as long as the country's economy grows faster, and the debt-to-GDP ratio remains manageable. The country's debt-to-GDP ratio rose to 62 percent in March this year, from 60.7 percent in the previous quarter as the country posted slower-than-expected economic growth. But the Department of Finance said the "international threshold for the debt-to-GDP ratio" was 70 percent.

The government has been borrowing heavily to finance its ambitious infrastructure program.

Source: news.abs-cbn.com