The Philippines’ national debt hit P16.05 trillion by the end of 2024, marking a P1.44 trillion increase or 9.8% growth from the previous year, according to the Bureau of Treasury.
The rise in debt was primarily due to the government borrowing P1.31 trillion through the issuance of debt instruments to cover its deficit. The depreciation of the peso against the US dollar also contributed an additional P208.73 billion to the debt burden, though this was slightly offset by P80.74 billion in savings from the appreciation of other foreign currencies.
At the end of 2024, the peso-dollar exchange rate stood at P57.847, higher than P55.418 a year earlier.
The majority of the country’s debt—68.1%—came from domestic borrowings, which surged to P10.93 trillion, while foreign debt rose by P522.55 billion to P5.12 trillion, making up 31.9% of total obligations.
The debt-to-GDP ratio reached 60.7%, slightly exceeding the 60.6% target, as the economy expanded at a slower-than-expected 5.6% growth rate. The government had aimed for at least 6% growth, but economic activity was hampered by severe storms in the latter half of the year.
Despite the growing debt, economic officials remain confident, stating that as long as the economy maintains steady growth, the debt remains manageable.
