Business

PH debt headed toward 60% of GDP by 2022

The country’s debt burden is expected to rise sharply in the next two years to reach P12 trillion by the time President Duterte steps down in 2022 as the government continues to secure more loans to fund its Covid-19 response.

Between now and 2021, the government will borrow an additional P3 trillion. The debt pile is see to hit P12 billion by the end of President Rodrigo Duterte’s term in 2022.

“The debt-to-GDP ratio is projected to settle at 54 percent this year and reach 58 percent in 2021, and 60 percent in 2022,” Finance Secretary Carlos Dominguez III said during the budget hearings which started last week.

He assured though the share would still be lower than the all-time high debt level of 71.6 percent of GDP in 2004 under President Gloria Macapagal-Arroyo.

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