PH debt-to-GDP ratio to decline as pandemic fades, economy recovers: Finance chief

Jessica Fenol, ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Philippine flags fly outside the Philippine Stock Exchange at Bonifacio Global City in Taguig on June 18, 2021. Jonathan Cellona, ABS-CBN News/File" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/business/04/05/20210618-philippine-stock-exchange-bgc-jc-5.jpg"/><figcaption>Philippine flags fly outside the Philippine Stock Exchange at Bonifacio Global City in Taguig on June 18, 2021.<em> Jonathan Cellona, ABS-CBN News/File</em></figcaption></figure></div><p><br/>MANILA - The Philippines&#x27; debt-to-GDP ratio, which soared to 60.5 percent due to the heavy borrowing in response to the COVID-19 pandemic, could start declining in 2022, Finance Secretary Carlos Dominguez said Tuesday.</p><p>Before the outbreak, the administration of President Rodrigo Duterte was able to bring down the country&#x27;s debt-to-GDP ratio to a &quot;historic low&quot; of 39.6 percent in 2019, Dominguez said during the Philippine Economic Briefing 2022.</p><p>In 2020, it rose to 54.6 percent and to 60.5 percent in 2021, Dominguez said, adding that &quot;this remains eminently manageable.&quot;</p><p>Meanwhile, the National Government <a href="https://news.abs-cbn.com/business/03/31/22/ph-posts-p1209-trillion-debt-in-february">debt </a>reached P12.09 trillion in February 2022, data showed. </p><p>&quot;The disruption brought about by the pandemic is only temporary. Supported by the rebound of revenue collections, our deficit and borrowings will begin to decline for the year,&quot; Dominguez said.</p><p>Despite the accelerated borrowings, the Philippines was able to maintain its investment grade credit ratings amidst the downgrades among its peers, he said.</p><p>Dominguez said this was &quot;a testament to our excellent record of prudent spending and fiscal discipline.&quot;</p><p>Fitch Ratings earlier affirmed its BBB rating for the Philippines but with a negative outlook, Moody&#x27;s Investor Services had also maintained its Baa2 rating or one notch above the minimum investment grade, while S&amp;P Global Ratings kept its BBB+ with a stable outlook rating for the country.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/27/21/sp-global-ratings-affirms-philippines-investment-grade-bbb-rating">S&amp;P Global Ratings affirms Philippines&#x27; investment grade BBB+ rating</a></li>	<li><a href="https://news.abs-cbn.com/business/07/12/21/fitch-affirms-philippines-bbb-rating-but-revises-outlook-to-negative-from-stable">Fitch affirms Philippines BBB rating but revises outlook to negative from stable</a></li>	<li><a href="https://news.abs-cbn.com/business/05/12/20/moodys-keeps-philippines-credit-rating-outlook-as-it-flags-virus-risk">Moody&#x27;s keeps Philippines&#x27; credit rating, outlook as it flags virus risk</a></li></ul><p>An investment-grade rating means the country could access more loans with lower interest rates. </p><p>The Finance chief also reiterated the government&#x27;s confidence in achieving this year&#x27;s growth target of 7 to 9 percent as the COVID-19 cases continue to decline.</p><p>The country&#x27;s gross domestic product contracted by 9.6 percent in 2020 before recovering to 5.6 percent in 2021.</p><p>&quot;As the pandemic subsides, the Philippine economy is now well on its way to rapid recovery,&quot; Dominguez said.</p><p>Dominguez also said the government is also monitoring the impact of the ongoing crisis between Russia and Ukraine.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/01/27/22/ph-economy-grows-56-percent-in-2021-beats-forecasts">Philippine economy grows 5.6 percent in 2021, exceeds target</a></li></ul><div><strong> RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1632685" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

PH debt-to-GDP ratio to decline as pandemic fades, economy recovers: Finance chief | ABS-CBN

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PH debt-to-GDP ratio to decline as pandemic fades, economy recovers: Finance chief

PH debt-to-GDP ratio to decline as pandemic fades, economy recovers: Finance chief

Jessica Fenol,

ABS-CBN News

Published Apr 05, 2022 02:05 PM PHT

Read More:

borrowings

COVID-19

debt to gdp ratio

DOF

spending

deficit

credit ratings

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