Philippines' external debt rises 9.8% to $137.63B

The Philippines' outstanding external debt increased by 9.8% to $137.63 billion as of end-December 2024 compared to the previous year.

This rise was mainly due to net availments totaling $9.61 billion, aimed at addressing liquidity needs in both public and private sectors.

Despite this increase, the debt-to-GDP ratio improved to 29.8% from 30.6% in the third quarter of 2024, supported by a 5.6% GDP growth for the full year.

The central bank attributed the decline in external debt levels during the fourth quarter to negative foreign exchange revaluation and net repayments.

Rizal Commercial Banking Corp.'s Chief Economist Michael L. Ricafort noted that the persistent national government budget deficit contributed significantly to the rise in external debt, despite efforts to manage foreign exchange risks.