The Philippines’ sovereign debt rose to P17.71 trillion by the end of 2025 as the government continued to borrow to fund development programs amid a weakening peso, according to data from the Bureau of the Treasury.
The debt level was 10.32 percent higher than the P16.05 trillion recorded in 2024. Domestic debt accounted for 68.4 percent of the total, amounting to P12.12 trillion, driven by the government’s net issuance of securities through regular auctions and the offering of Retail Treasury Bond Tranche 31.
Foreign debt increased to P5.59 trillion following the issuance of new global bonds and the net availment of official development assistance from international development partners. The Treasury said foreign debt also rose due to the upward revaluation of foreign currency denominated obligations caused by unfavorable exchange rate movements.
The peso fell to a new low of P59.46 against the US dollar during the period, increasing the peso value of foreign currency debt.
Economic managers have said the country’s rising debt is not a cause for concern as long as economic growth exceeds the pace of debt accumulation. However, economic growth in 2025 was slower than expected as weather disturbances dampened economic activity and government spending slowed following a major corruption scandal.
