Philippines foreign debt reaches $147.35 billion in Q1, stays steady at 30% of GDP

Bangko Sentral ng Pilipinas says external debt remains manageable as reserves stay strong at over $106 billion, covering short-term obligations more than four times over.

The Philippines’ foreign debt stood at $147.35 billion (around ₱9.0 trillion) as of end-March, according to the Bangko Sentral ng Pilipinas, easing slightly from the previous quarter while staying broadly aligned with economic output at 30% of GDP.

The marginal decline from $147.65 billion at end-December was driven by lower non-resident holdings of Philippine debt securities, a sign of reduced appetite for emerging market instruments amid tighter global financial conditions. Despite this, the overall debt position remained close to its recent range, with only a slight uptick from $146.74 billion a year earlier.

The BSP noted that the year-on-year increase came mainly from fresh borrowings by both the national government and the private sector, much of which supported development spending, trade activity, and ongoing business financing needs.

A key cushion remains the country’s foreign reserves. Gross international reserves reached $106.64 billion (about ₱6.5 trillion), giving the Philippines enough buffer to cover short-term external debt obligations more than four times over based on remaining maturities of $25.5 billion.

The debt service ratio rose to 9.5% in the first quarter from 8.5% a year earlier, reflecting higher principal repayments, but still within what the central bank considers manageable levels.

Overall, the BSP described the external debt profile as stable, shaped largely by market conditions and ongoing funding requirements rather than signs of stress, even as global financing conditions remain uneven for emerging economies.

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