Metro Manila (CNN Philippines, February 2) — The country’s debt further swelled in 2022 to ₱13.42 trillion due to double-digit increases in domestic and foreign borrowings, data from the Bureau of the Treasury (BTr) showed Thursday.
Last year’s outstanding obligations were 14.4% higher than 2021’s ₱11.73 trillion.
This, as domestic debt rose by 12.7% or ₱1.04 trillion, while external loans climbed by 18.3% or ₱652.34 billion.
During the year, the majority of the debt was still raised from local sources.
But, according to the Treasury, the strengthening of the Philippine peso against the US dollar during the latter part of 2022 helped soften the jump in debt.
Despite registering higher debt, the country’s debt-to-gross domestic product (GDP) ratio stood at 60.9% for end-2022, an improvement from 63.7% as of end-September 2022.
“This reflects the consistent drive to bolster debt sustainability through prudent cash and debt management backed by resurgent economic growth,” the BTr said in a statement.
The Philippines posted its strongest economic growth since 1976 at 7.6% last year buoyed by Filipinos’ revenge spending, again beating some economists’ bleak forecasts.
