Philippines' debt-to-GDP ratio balloons to 63.5 percent as of end March

ABS-CBN News

Posted at May 13 2022 09:59 AM | Updated as of May 13 2022 10:06 AM

Watch more News on iWantTFC

The Philippines' debt-to-GDP ratio ballooned to 63.5 percent in March from 60.4 percent in December, government data showed. 
 
The total is the highest since 2005 when the debt ratio reached 65.7 percent. It has been hovering below 40 percent before the COVID-19 pandemic.

It also breached the international debt-to-GDP threshold set at 60.4 percent.

As of the end of March, the country's debt was at P12.68 trillion driven by the government's heavy borrowings to fund its pandemic response and the administration's Build, Build, Build program.

Economic managers have said that the current debt level remains manageable as long as the government maintains robust economic growth.

If mismanaged, high debts could put the country's investment-grade ratings in jeopardy. So far, it has kept its credit ratings during the pandemic due to fiscal prudence and strong macroeconomic conditions amid global downgrades.