PH External Debt Remains “Manageable” Despite Q2 2025 Increase – BSP

The Bangko Sentral ng Pilipinas (BSP) reported that the country’s external debt remains stable and manageable despite posting a 1.5% increase in the second quarter of 2025.

As of June 2025, the Philippines’ external debt stood at US$148.87 billion, slightly higher than in the previous quarter. The BSP attributed the uptick to the weaker US dollar, which raised the value of obligations in other currencies, along with sustained foreign interest in Philippine debt securities.

Nevertheless, the debt level remains within safe bounds, equivalent to only 31.2% of the country’s gross domestic product (GDP), down from 31.5% in the first quarter. The BSP also noted that short-term external debt, amounting to US$28.63 billion, is more than adequately covered by the country’s US$106 billion in gross international reserves.

The country’s debt service ratio also improved to 8.7% from 9.8% last year, indicating a lighter burden in debt repayment.

Source | Radyo Pilipinas 

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