Recto: Borrowings stay manageable

Debt-to-GDP ratio stood at 60.9 percent as of 2023, down from 61.8 percent the previous year

The country’s obligations remain manageable and are on course to meet the government’s target to reduce the debt-to-gross domestic product or GDP, ratio by next year, Finance Secretary Ralph Recto said.

In a statement sent to Malacañang reporters, Recto highlighted the government’s commitment to reducing the debt-to-GDP ratio to below 60 percent by 2025.

GDP refers to the total value of all goods and services produced within a country over a given period, while the debtto-GDP ratio, a key indicator of a country’s fiscal health, measures the total debt as a percentage of its economic output.

‘We are firm in our commitment to ensure that our economic progress is felt in the dayto-day lives of our people.’

According to the latest figures from the Philippine Statistics Authority, the country’s 2023 gross domestic product slowed to 5.6 percent from the 7.6 percent full-year 2022 GDP growth.

The latest data from the Bureau of Treasury showed that the country’s debt-to-GDP ratio stood at 60.9 percent as of 2023, down from 61.8 percent the previous year.

However, the country’s total outstanding debt amounted to P14.62 trillion, higher by 8.9 percent from the end-2022 level.

Local, foreign debts rise

The BTr said of the total debt stock, domestic borrowings amounted to P10.02 trillion, up by 8.7 percent year on year.

External debt, on the other hand, amounted to P4.6 trillion, higher by 9.2 percent from the end-December 2022 level.

Recto said the government is dedicated to enhancing the economic conditions in the Philippines.

“We are firm in our commitment to ensure that our economic progress is felt in the day-to-day lives of our people,” Recto said.

He added that the Philippines will take advantage of the vote of confidence from multilateral organizations and credit rating agencies, the strong macroeconomic fundamentals and sound fiscal policies to attract more investments and further improve the employment conditions in the country.