NG debt to hit P24.7 trillion by 2030; debt-to-GDP ratio to fall to 58% - DoF

FINANCE Secretary Ralph G. Recto on Monday said the government is working to ensure that economic growth would outpace debt accumulation, as outstanding debt is projected to hit P24.7 trillion by 2030.

-  Kenneth Christiane L. Basilio

“We will make sure that the economy would continue to outgrow the country’s debt,” he said during the Development Budget Coordination Committee briefing before the House of Representatives Appropriations Committee. “This would ensure that we have the ability to pay off our obligations.”

Economic managers are targeting 5.5-6.5% economic growth this year, and 6-7% growth from 2026 to 2028.

Mr. Recto said the value of the Philippine economy is projected to reach P42.6 trillion by 2030, while the debt of P24.7 trillion would account for 58% of gross domestic product (GDP).

This would be the first time since 2020 that the debt-to-GDP ratio would fall below the 60% threshold considered by multilateral lenders to be manageable for developing economies.

The National Government (NG) debt jumped to a fresh high P17.27 trillion as of end-June, bringing the debt-to-GDP ratio to 63.1%.

NG debt is projected to reach P17.4 trillion by the end of 2025, although the debt-to-GDP ratio is seen slipping to 61.3%.