Tricky Profit
  • Stock
  • Economy
  • Politics
  • Editor’s Pick
EconomyEditor's Pick

PHL debt benchmark now at 70% of GDP, Malacañang claims

by July 7, 2025
by July 7, 2025 0 comment

By Chloe Mari A. Hufana, Reporter

THE appropriate benchmark for sustainable debt for the Philippines is now 70% of gross domestic product (GDP), according to Malacañang.

Palace Press Officer Clarissa A. Castro told reporters on Monday at a briefing that the Department of Finance (DoF) considers 70% of GDP to be the international threshold for sustainable borrowing, as opposed to the 60% rule-of-thumb that multilateral banks often hold developing countries to.

“We are at a sustainable level (of debt) because 70% is the international threshold for debt-to-GDP ratio,” Ms. Castro said.

Philippine debt is currently at 62% of GDP. It rose to nearly P17 trillion at the end off May.

At any rate, Ms. Castro said all government borrowing is being channelled appropriately to projects that enable growth.

“These were used for growth-enhancing investments such as infrastructure, education, agriculture, health, and social services,” she said.

Asked if the Marcos administration will continue to target bringing down the debt ratio to below 60% by the end of its term in 2028, Ms. Castro said the economic team will be consulted for updated targets.

The Philippines ramped up borrowing in recent years to support pandemic relief, infrastructure works, and social protection programs, pushing the debt stock to record levels.

The National Government’s (NG) outstanding debt rose to a record P16.92 trillion at the end of May, up 0.99% from April and increasing 10.24% from a year earlier, according to the Bureau of the Treasury (BTr).

The increase was primarily driven by the net issuance of new domestic securities, which the BTr said reflected strong investor confidence in the economy.

Domestic debt, which accounts for nearly 70% of total borrowing, hit P11.78 trillion, up 1.64% compared to April and 12.8% higher year on year.

Meanwhile, external debt edged down 0.46% to P5.14 trillion, due to net repayments and peso’s appreciation.

Government‑guaranteed obligations rose 1.79% to P343.6 billion, driven by increased domestic guarantee availments and currency revaluation effects.

BTr officials described the increase as “minimal” and reaffirmed the government’s commitment to a prudent debt management strategy, aimed at aligning borrowing with fiscal objectives and macroeconomic stability.

The Treasury said the debt “remains manageable,” adding that the government is committed to prudent debt management.

NG outstanding debt is projected to hit P17.35 trillion at the end of 2025.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Trump dismisses Musk’s political ambitions as ‘ridiculous’ in sharp rebuke
next post
DTI launches e-commerce trustmark

You may also like

PHL slips in investor relations, debt transparency rankings

July 10, 2025

SBCorp. approves P4.22 million in loans for female...

July 10, 2025

San Juanico disruptions highlight need for containerizing key...

July 10, 2025

DENR seeking to plant 3 million trees in...

July 10, 2025

Ground broken on New Clark affordable-housing project

July 10, 2025

Meralco to tap more WESM power following delays...

July 10, 2025

Miners see Trump copper tariffs driving value-adding push

July 10, 2025

PCC considering changes to divestment rules

July 9, 2025

LGUs ordered to develop coastal ‘greenbelt’ zones

July 9, 2025

CAB seeks expanded air deal with Australia

July 9, 2025

    Join our mailing list to get access to special deals, promotions, and insider information. Your exclusive benefits await! Enjoy personalized recommendations, first dibs on sales, and members-only content that makes you feel like a true VIP. Sign up now and start saving!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Pro-Trump ‘troll’ who spread Hillary text-to-vote memes in 2016 has conviction tossed by appeals court

      July 10, 2025
    • Trump had very unexpected convo with Obama at Carter’s funeral: Book

      July 10, 2025
    • 10 reasons the DOJ and FBI face backlash over Epstein files flop

      July 10, 2025
    • SBCorp. approves P4.22 million in loans for female entrepreneurs

      July 10, 2025
    • PHL slips in investor relations, debt transparency rankings

      July 10, 2025

    Disclaimer: TrickyProfit.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Copyright © 2025 TrickyProfit.com All Rights Reserved.

    Tricky Profit
    • Stock
    • Economy
    • Politics
    • Editor’s Pick