The Philippines’ sovereign debt reached a new record high of P15.689 trillion as of July 30, 2024, according to data released by the Bureau of the Treasury. This represents a 1.3% increase from the P15.483 trillion recorded at the end of June.
The month-on-month increase of P206.49 billion is attributed to net issuances of both domestic and foreign debt.
The continuous rise in debt is primarily driven by increased government spending to address rising inflation and other economic challenges.
Additionally, higher interest rates and a slightly weaker peso exchange rate since 2022 have contributed to the increased debt service burden.
Finance Secretary Ralph Recto has previously projected that the country’s debt could reach P20 trillion by the end of President Marcos’ term in 2028. However, he expressed confidence that the country’s economic growth will outpace the total debt.