MANILA – The share of the country's total liabilities to gross domestic product (GDP) improved in the third quarter of the year.
In a statement on Thursday, the Bureau of the Treasury (BTr) said with the 5.9 percent GDP expansion in the third quarter, the debt-to-GDP ratio improved to 60.2 percent from 61 percent in the second quarter of the year.
The debt-to-GDP is the widely used indicator for tracking debt sustainability.
"With the latest development, NG's (National Government) end-of-year debt ratio is likely to be lower than the 2023 Medium Term Fiscal Framework (MTFF) target of 61.4 percent," the BTr said.
"Moreover, the NG debt-to-GDP ratio is on pace to fall below 60 percent earlier than the 2025 MTFF commitment."
Latest data from the BTr showed that the NG's total outstanding debt declined to PHP14.27 trillion as of end-September this year from PHP14.34 trillion in August.
The bureau said the decline was "primarily due to net repayments of both domestic and external obligations for the month." (PNA)