Debt-to-GDP ratio rises in Q2

The share of the country’s outstanding debt to the overall economy slightly picked up in the second quarter and remained above the internationally accepted threshold even after a strongerthan-expected economic performance.

- LOUISE MAUREEN SIMEON

Following the 6.3 percent gross domestic product (GDP) print in the second quarter, the share of national debt to the country’s output rose slightly to 60.9 percent from 60.1 percent in the previous quarter.

This was also just slightly below the 61 percent recorded in the second quarter of last year.

The latest ratio is above the 60.6 percent target by yearend set by the Development Budget Coordination Committee.

As of end-June, the national debt is at a record P15.48 trillion.

As such, the current debt-to-GDP ratio remained above the internationally accepted threshold of 60 percent, which still puts the Philippines in a vulnerable spot regarding its capacity to pay its financial obligations.