The country’s total external debt (EDT) decreased to USD137.63 billion as of December 2024, a 1.4 percent drop from the previous quarter’s USD139.64 billion, according to the Bangko Sentral ng Pilipinas (BSP). The reduction reflects both a decline in debt levels and the country’s 5.2 percent GDP expansion in Q4 2024, bringing the external debt ratio down to 29.8 percent from 30.6 percent in September 2024.
This decline in external debt was influenced by a stronger US dollar, which led to a USD1.29 billion negative FX revaluation, and a USD835.33 million reduction from the net acquisition of Philippine debt securities by residents. The country’s debt service ratio (DSR) rose to 11.5 percent, reflecting higher debt service payments, but other indicators, such as gross international reserves (GIR), remained robust at USD106.26 billion, covering 3.81 times short-term debt.
Despite the decline in the last quarter, the country’s external debt stock grew by USD12.23 billion (9.8 percent) year-on-year, largely due to net availments of USD9.61 billion to meet liquidity needs. Public sector debt accounted for most of the debt stock, with 92.9 percent belonging to the National Government.
The external debt profile remains primarily composed of medium-to-long-term (MLT) borrowings, with US$109.72 billion (79.7 percent) in MLT debt. Currency mix remains dominated by US dollars (74 percent). The Philippines’ financial stability appears secure, with sustainable debt levels and ample reserves to meet future obligations.
