Philippines' sovereign debt hits record P16.63T

The Philippines' sovereign debt reached a record high of P16.63 trillion in February 2025, up from P16.31 trillion at the end of January.

This increase was primarily due to the issuance of new government securities and foreign borrowing, with domestic debt rising by 1.26% to P11.22 trillion and external debt increasing by 3.44% to P5.41 trillion.

The financing mix reflects a prudent approach to debt management, mitigating exposure to external risks while taking advantage of the country's liquid domestic market.

Despite these increases, economists like Reinielle Matt M. Erece from Oikonomia Advisory and Research Inc., suggest that the debt remains manageable as long as revenue generation continues to improve and economic growth outpaces expenditure growth.