The country’s external debt dropped to 19.67 percent of gross national income (GNI) as of the end of the first quarter of 2020, the Department of Finance (DOF) said.
In its latest economic bulletin released yesterday, the DOF said the figure fell from 20.98 percent in the same period in 2019.
As a percent of goods and services and primary income, DOF said it also dropped to 54.4 percent from 54.8 percent.
The agency attributed the decline primarily to the public sector debt which dropped from $40.13 billion to $38.3 billion.
The DOF said compared with two decades ago when the country was recovering from the Asian financial crisis, external debt ratios in 2020 were 41.4 percent of the debt-to-GNI ratio, and 51.2 percent of the debt-exports ratio in 2000.
Compared with those of its Asian peers in 2018, the DOF said external debt ratios of the Philippines are lower, the latest data from the World Bank show.
As a percent of GNI in 2018, the Philippines’ external debt ratio is only 19.9 percent, compared to the 33.6 percent average for nine Asian economies. The country’s ratio is the third lowest behind China and India.
“The Philippines’ prudent debt policy has enabled the country to strengthen its defenses against external shocks like the coronavirus disease 2019 pandemic,” the DOF said.
“This is one of the reasons for the strong confidence of investors in the Philippine economy,” it added.
Meanwhile, in a separate statement yesterday, the Japan International Cooperation Agency (JICA) said it is giving additional support to the Philippines’ coronavirus disease 2019 (COVID-19) response through laboratory equipment and supplies for use of the Research Institute of Tropical Medicine and San Lazaro Hospital as virus cases rise.
The laboratory equipment and supplies will further boost the testing capacity of the two facilities and ensure quality of test results.
JICA said the support complements the earlier 50 billion yen COVID-19 Crisis Emergency Support of Japan to the Philippines that sought to strengthen the Philippines’ response to the pandemic and revitalize economic activities.
“COVID-19 is not only a challenge of one nation, but of the rest of the world. JICA will continue to work closely with our partner nations like the Philippines, as we have done in the past, so we can get through this public health challenge together,” Azukizawa Eigo, chief representative of JICA Philippine office, said.
