The Philippines has 19.4 percent external debt to gross income lower than other Asian countries, according to the data acquired from World Bank. This translates that Philippines can pay its foreign debt relative to other neighboring countries except China.
Department of Finance stated that “despite the rose of national government’s outstanding debt in 2017, its share to the gross domestic product remained the lowest since 1980 amid sustained robust economic growth”.
Moreover, as cited in the report from AgrinationPH,” China was found to have the least external debt to GNI ratio among countries while Vietnam accounted the highest, with 45.70 percent”.
External debt to GNI ratio is the ratio that country pay to its foreign debt from its earnings.
Respectively, according to the report of Business “the Philippines borrows from both domestic and external sources to help fund its budget deficit and support a growing economy, particularly to support the ambitious P8.44-trillion infrastructure spending plan”.
Bangko Sentral ng Pilipinas accounted that “public sector borrowings [had] a longer average term of 23.1 years compared to 7.8 years for the private sector”.
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Philippines has lower foreign debt ratio than other Asian countries
F: Despite record-high 2017 debt, its share to economy lowest since 1980
