4-3-2025 (MANILA) The Bureau of Treasury revealed Tuesday that the Philippines’ outstanding debt has climbed to P16.31 trillion ($279.4 billion) by January’s end 2025, marking a notable increase of P261.47 billion—equivalent to 1.63 per cent—from December’s figures.
This upward trajectory stems from two key factors: continued government borrowing and the weakening Philippine peso, which has depreciated to P58.375 against the US dollar by January’s close, compared to P57.847 registered at the end of 2024. This currency shift has significantly inflated the value of foreign-denominated obligations.
The Treasury maintains that the current debt levels remain “manageable and in line with the government’s target to support economic development whilst ensuring fiscal sustainability,” despite these increases.
Nearly 68 per cent of the national borrowing comprises domestic debt, which totalled P11.08 trillion in January—a rise of P153.68 billion or 1.41 per cent since December. Currency fluctuations contributed P1.51 billion to this domestic debt figure.
Foreign creditors account for the remaining 32.1 per cent of national obligations. External debt reached P5.23 trillion, reflecting a monthly increase of P107.79 billion or 2.1 per cent. Fresh borrowing added P59.3 billion to this sum, whilst peso depreciation against the dollar contributed a further P46.74 billion. Unfavourable movements in other currencies added an additional P1.75 billion.
Economic officials have consistently downplayed concerns about the rising debt burden, suggesting it poses no significant threat provided the economy maintains robust growth. However, this confidence comes amid challenges, as the Philippine economy expanded by only 5.6 per cent in 2024—below the government’s minimum target of 6 per cent. This shortfall was primarily attributed to devastating storms in the latter half of the year.
Consequently, the debt-to-GDP ratio stood at 60.7 per cent for 2024, marginally exceeding the 60.6 per cent target—a situation exacerbated by the slower-than-anticipated economic expansion.
