Philippine debt hits P17.27T, up 2% from May

The Philippine government's total outstanding debt reached P17.27 trillion by the end of June, marking a new high due to strong investor demand for government securities, according to data from the Bureau of Treasury (BTr) on Thursday.

This represents a 2% increase from May and an 11.5% rise compared to June 2024, with domestic debt accounting for P11.95 trillion or 69.2% of total debt while foreign debt stood at P4.91 trillion or 30.8%.

The BTr attributed this growth primarily to robust domestic borrowings including P886 billion in treasury bills and P11.063 trillion in treasury bonds, with external debt rising by 8.3% to $5.32 trillion.

Despite hitting a new record high, the Treasury said outstanding debt remains sustainable under the Marcos Jr. administration's prudent debt management strategy for fiscal sustainability and inclusive growth, aiming to boost local capital markets while lowering foreign exchange risks.

Economic managers noted that rising debt is not a cause for concern as long as economic growth outpaces borrowing and the debt-to-GDP ratio remains manageable; however, some economists have expressed concerns over the country's increasing debt levels.