MANILA, Philippines — The country’s debt remains manageable, said Finance Secretary Ralph Recto on Thursday.
“Our debt right now remains at a very manageable level, and we are on track to bringing down the debt-to-GDP ratio to less than 60 percent by 2025. We have a sound and prudent strategy in place to effectively manage our debt and financing requirements,” Recto said in a statement.
A Malacañang statement noted that the 2023 gross domestic product (GDP) growth of 5.6 percent brought the country’s debt-to-GDP ratio to 60.2 percent, down from 60.9 percent in 2022.
However, the current debt-to-GDP ratio, a closely watched indicator of a country’s ability to repay its debt, is still above the 60-percent threshold that credit rating agencies deem manageable for developing economies like the Philippines.
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According to Recto, the government remains committed to improving the Philippine economy.
“The strong economic performance in 2023 is a clear testament to the government’s efforts in creating an environment conducive to enhancing the purchasing power of Filipinos. We are firm in our commitment to ensure that our economic progress is felt in the day-to-day lives of our people,” Recto said.
The Bureau of Treasury on Thursday reported that national debt in 2023 amounted to P14.62 trillion, up by 8.92 percent year-on-year.