Philippines' external debt remains manageable despite reforms

The Philippines' external debt remains manageable despite an increase in foreign borrowings due to structural reforms over the past 20 years.

As of end-March, the country's external debt was USD81.4 billion, lower than the previous year's USD83.6 billion.

The BSP approved USD5.6 billion in foreign borrowings for pandemic-related programs, with major lenders including the ADB, IBRD, AIIB, JICA, and AFD.

Key metrics such as the debt-to-GDP ratio (21.4%) and debt service ratio (8.9%) indicate that the Philippines can sustainably manage its external liabilities.

Reforms in industry liberalization, tax and debt management, and financial sector improvements have bolstered the economy's resilience.