Connect with us

Hi, what are you looking for?


Return to pre-pandemic debt could pose growth risk

DETERIORATING public finances across Asia will be difficult to reverse, with any attempts to return to pre-pandemic debt ratios posing a risk to growth, ANZ Research said.

“Governments can afford to maintain expansionary fiscal policies and some are doing so,” ANZ Research analysts said in a note.

“We further estimate that restoring public debt ratios to pre-pandemic levels is an exceptionally tall order. It will require governments to run primary surpluses on a scale that will severely hurt growth,” according to Sanjay Mathur, ANZ research chief economist for Southeast Asia and India, and economist Krystal Tan.

The Philippines’ fiscal position will likely continue to weaken in 2021, though its larger budget deficits and debt levels are unlikely to harm macroeconomic stability, they said.

“Based on this fiscal stance, the public debt ratios (in Asia are) likely to continue to rise in 2021. In Malaysia, the debt ratio will remain above 60% of GDP (gross domestic product) and in the Philippines, it will exceed its 50% threshold,” Mr. Mathur and Ms. Tan said.

The government expects the Philippine debt-to-GDP ratio to hit 53.9% and 58.3% this year and in 2021. These are still below the threshold of 70% deemed safe by the International Monetary Fund but are much higher than the record low of 39.6% in 2019.

The budget deficit is expected to grow to P1.815 trillion this year, equivalent to 9.6% of GDP, before receding to P1.749 trillion or 8.5% of GDP next year. The budget deficit in 2019 was P660.2 billion or 3.4% of GDP. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



REPORTS of significant attacks against two Russian air bases are a new and dangerous twist in the Ukraine war. One of the explosions was...


The COVID-19 pandemic dealt a blow to the Philippine economy and exposed many gaps and weaknesses in our system that had been present for...


In 2016, several art scholars and museums embarked on a project to digitally produce 17th century artist Rembrandt’s next work, by using a computer...


Southeast Asia is adjusting to a new normal with the welcome return of travel and in-person gatherings, be it at work, with family and...


SINGAPORE — Jollibee Foods Corp, the biggest fast-food operator in the Philippines, is in advanced discussions to sell a minority stake in its Vietnamese...


INDONESIAN lawmakers have passed a contentious criminal code that outlaws extramarital sex and raises penalties on abortions as part of legislation that sparked violent...

You May Also Like


The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.