Philippines' external debt service up 18% to $17.16B in 2024

The Philippines' external debt service burden reached $17.16 billion in 2024, marking an 18 percent increase from $14.85 billion in 2023, according to data from the Bangko Sentral ng Pilipinas (BSP).

This rise reflects a nearly 16 percent increase from the previous year and signifies that last year's external debt service burden was equivalent to 3.7 percent of gross domestic product (GDP), higher than the previous year's 3.4 percent.

In 2024, principal repayments rose by 15.2 percent to $8.94 billion from $7.76 billion in 2023, while interest payments increased by 15.8 percent to $8.22 billion.

The external debt service burden includes both principal and interest payments on fixed medium- and long-term credits as well as short-term liabilities of banks and non-banks.

Public sector external debt decreased slightly to $85.34 billion in December 2024 from $86.88 billion in September, while private sector debt also declined marginally to $52.29 billion.

The national government relies heavily on foreign and domestic borrowing to finance its budget deficit as it spends more than its earnings.