The country’s foreign debt rose slightly in the third quarter of 2025, but levels remained manageable and supportive of overall economic stability, data from the Bangko Sentral ng Pilipinas (BSP) show.
Outstanding external debt reached US$149.09 billion as of end-September, up 0.1 percent from the previous quarter. The modest increase was mainly due to higher investments by foreign investors in Philippine debt securities, reflecting continued confidence in the country’s financial markets. This was partly offset by debt repayments and valuation effects from a stronger US dollar.
As a share of the economy, external debt actually improved, falling to 30.9 percent of gross domestic product (GDP) from 31.2 percent in the previous quarter. This indicates that economic growth continued to outpace the rise in foreign obligations.
Key indicators point to a strong capacity to service external debt. Short-term external debt stood at US$27.16 billion, while the country’s gross international reserves of US$109.06 billion were more than four times enough to cover these obligations. This buffer compares favorably with other emerging economies.
The country’s debt service ratio also improved, dropping to 8.5 percent from 11.5 percent a year earlier, meaning a smaller share of export and income earnings is being used to pay foreign debt. This leaves more resources available for domestic economic activity and strengthens protection against external shocks.
On a year-on-year basis, external debt rose 6.8 percent, driven mainly by new borrowings, including government bond issuances and external financing by local banks. Overall, authorities said the debt position remains sustainable, supported by sound economic fundamentals and prudent fiscal and monetary policies.
