PH debt-to-GDP ratio seen to stay above 60%

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INQUIRER.net FILE PHOTO / Jerome Cristobal

MANILA, Philippines – The Philippines’ debt trajectory is expected to remain above the 60-percent level over the medium term as the oil-driven inflation shock and weaker growth outlook continue to weigh on the country’s fiscal position, according to the Congressional Policy and Budget Research Department (CPBRD).

In its recent report, the CPBRD projected that the debt-to-GDP (gross domestic product) ratio could rise to 63.8 percent in 2026 from 63.2 percent last year, assuming growth of 3.7 percent for the full year, above the 60-percent level considered to be sustainable.

Both figures are seen to miss the government’s targets, with the debt-to-GDP still elevated compared with the 56.6-percent goal under the medium-term fiscal framework (MTFF), while GDP growth remains below the 5-percent to 6-percent target for the year.