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PHL debt is still manageable — WB
The World Bank stated that the Philippines' debt remains manageable despite exceeding the 60% recommended debt-to-GDP ratio, which reached 63.5% in the first quarter of 2022.
The country's outstanding debt reached a record high of P12.76 trillion as of end-April 2022.
World Bank senior economist Kevin Chua noted that the majority of the Philippines' debt is long-term, domestic, and peso-denominated, offering protection against risks.
Approximately 70% of the total government debt was borrowed domestically.
The World Bank stressed the need for a solid fiscal consolidation plan and high economic growth to manage the debt.
The Department of Finance has unveiled a fiscal consolidation plan to raise an average of P284 billion annually for the next 10 years to repay pandemic-related debt.
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See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
The Philippines' total outstanding debt reached P12.76 trillion as of end-April 2022, an increase of 0.7% or P83.4 billion from the previous month.
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The Philippines may need at least 10 years to revert its debt-to-gross domestic product (GDP) ratio to its pre-pandemic level of 40%.
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The World Bank projects the Philippine economy to grow by 5.7 percent in 2022 and forecasts 5.6 percent growth for 2023 and 2024.
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The Department of Finance (DOF) stated that the Philippines' public debt would have reached P15.4 trillion by the end of 2022 if the government had yielded to proposals such as spending more on pandemic relief and suspending the fuel excise tax.
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