Connect with us

Hi, what are you looking for?

Economy

PHL debt-to-GDP ratio projected at 45.6% — S&P

DEBT as a proportion of gross domestic product (GDP) is expected to hit 45.6% this year due to heavy borrowing during the pandemic, with gradual reductions expected by 2023, S&P Global Ratings said.

General government debt as a proportion of GDP is expected to rise slightly from S&P’s 2020 estimate of 45.5%, S&P said in a note issued Wednesday.

In 2019, the Department of Finance estimated the ratio at 34.1%.

The debt-to-GDP ratio measures an economy’s capacity to absorb debt, by comparing it to the resources available.

S&P said its “BBB+” rating with a stable outlook for the Philippines factors in its estimates of debt in the coming years. A stable outlook indicates that a rating is likely to be maintained over the next 18 to 24 months.

“Our government debt projections to end-2023 reflect limited contingent liabilities to public balance sheets from the ongoing distress that banks and non-financial corporations are experiencing,” S&P said.

“The good news for the majority of rated sovereigns is they face the current fiscal shock with historically low funding costs,” it added.

In the Philippines, key policy rates such as the reverse repurchase, lending, and deposit facilities are at record lows of 2%, 2.5%, and 1.5%, respectively. The monetary authorities undertook a series of policy easing moves amounting to 200 basis points last year to support the economy through the economic downturn.

S&P has warned that a rating downgrade could be in the works if the economy “suffers from a sharper and more prolonged downturn than we expect, leading to a material deterioration in the Philippines’ fiscal and debt positions.”

It expects the economy to grow by 9.6% and 7.6%, in 2021 and 2022 respectively.

GDP declined by a record 9.5% in 2020. — 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Your email address will not be published.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!

Latest

Investing

People living in rural areas are having to travel further to find somewhere to withdraw and deposit cash free of charge, says the City...

Investing

Ministers have ruled out extending the list of workers who are exempt from self-isolation rules and warned that the August 16 date for lifting...

Economy

The House of Representatives will adopt the Senate’s version of the proposed measure taxing Philippine Offshore Gaming Operators (POGO), a key lawmaker said on...

Economy

President Rodrigo R. Duterte on Friday approved the recommendation of his pandemic task force to enforce stricter quarantine rules in Manila, the capital, and...

Economy

Thirty-seven percent of Filipinos are optimistic that their lives will improve over the next 12 months, a non-commissioned survey shows.  Of the 1,200 respondents in Social Weather Stations’...

Economy

Six electricity consumers on Friday filed a complaint with the Ombudsman against Department of Energy (DoE) Secretary Alfonso G. Cusi, alleging that the government official has neglected his duties.  “In his five...

You May Also Like

Investing

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

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, 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.

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!