NG debt-to-GDP improves

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The national government’s debt-to-gross domestic product (GDP) ratio eased to 60.2 percent as of end-September, data released by the Bureau of the Treasury (BTr) showed.

According to the latest debt indicators, the debt-to-GDP as of September 2023 improved from the 61 percent level as of end-June this year.

It is also lower than the 63.7 percent debt-to-GDP ratio as of the same period a year ago.

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For the full year of 2022, the national government’s debt-to-GDP was 60.9 percent.

The debt-to-GDP ratio is a widely used indicator for tracking debt sustainability.

“With the latest development, the national government’s end of year debt ratio is likely to be lower than the 2023 Medium Term Fiscal Framework (MTFF) target of 61.4 percent,” the BTr said in a statement.

“Moreover, the national government debt-to-GDP ratio is on pace to fall below 60 percent earlier than the 2025 MTFF commitment,” it added.

The Philippine Statistics Authority reported yesterday that the economy expanded by 5.9 percent, a vast improvement from the 4.3 percent increase in the second quarter.

The BTr previously said the national government’s total outstanding debt at the end of September 2023 stood at P14.27 trillion.

The amount underscores a decline of P80.9 billion or 0.6 percent from the previous month’s level, primarily due to net repayments of both domestic and external obligations for the month, the BTr said.

Of the total debt stock, 31.8 percent are from external sources while 68.2 percent are from domestic borrowings. – Angela Celis

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