- Peso Depreciation Drives Philippine Debt to New High
- Philippine Debt Hits Record P16.09 Trillion
- Philippine Debt Climbs to P16.09 Trillion on Financing, Weak Peso
- Philippine Debt Soars Amidst Currency Volatility
- Manageable or Mounting? Philippine Debt Reaches P16.09 Trillion
The Philippines' outstanding debt has reached a new high of P16.09 trillion at the end of November 2024, according to the Bureau of Treasury. This represents a 0.4 percent increase from the previous month and is primarily attributed to net financing and the depreciation of the peso against the US dollar.
The peso's depreciation against the US dollar has played a significant role in the increase in the country's debt stock. The peso weakened from P58.198 at the end of October to P58.602 at the end of November, leading to an increase in the local valuation of foreign debt.
Of the total debt stock, domestic debt accounts for P10.92 trillion or 67.87 percent, while foreign debt makes up P5.17 trillion or 32.13 percent. The increase in domestic debt is attributed to the net issuance of domestic securities and the impact of peso depreciation on US dollar-denominated domestic debt.
The depreciation of the peso has had a more pronounced effect on the country's foreign debt, which increased by P38.88 billion from the end of October. This is mainly due to the increase in the local valuation of US dollar-denominated debt, as well as net foreign loan availments.
Since the start of the year, the Philippines' domestic debt has risen by P903.73 billion or 9 percent, while the external debt has climbed P570.97 billion or 12.4 percent. Compared to the debt level when President Ferdinand Marcos Jr. assumed power in July 2022, the country's debt has increased by P3.2 trillion.
Despite the increase in debt, economic managers have maintained that the country's debt remains manageable as the economy continues to grow. The country's debt-to-GDP ratio stood at 61.3 percent at the end of September, according to the Treasury.
The Philippines borrowed heavily during the COVID-19 pandemic to finance its response to the health crisis and to support the economy through infrastructure spending. This has contributed to the increase in the country's debt level.
The government is taking steps to manage the country's debt, including improving revenue collection and implementing fiscal reforms. The country's economic growth is also expected to help in managing the debt.
0 Comments