Record-high debt 'not worrisome

The Marcos Jr. administration's chief economic manager has allayed concerns about the rising public debt level, claiming that the national government maintains prudent fiscal management.

- BY BEN ARNOLD DE VERA

Asked on Tuesday, June 3, if there's anything to worry about regarding debt accumulation, especially as the nominal amount breaches new highs, Department of Finance (DOF) Secretary Ralph G. Recto told Manila Bulletin: "Credit rating agencies have upgraded us. They're not worried."

The Philippines enjoys investment-grade credit ratings from the so-called Big Three debt watchers: Fitch Ratings, Moody's Ratings, and S&P Global Ratings. S&P has currently assigned the Philippines its highest rating—one notch below "A-"—while Moody's and Fitch have given the country the minimum investment grade.

In November last year, S&P upgraded the Philippines' credit outlook to "positive," indicating a growing likelihood of a further rating upgrade in the near term. The government is aiming for an "A" rating before the current administration's term ends in 2028.

Also, Recto said that "economic growth is faster than the debt."