The Philippines' outstanding external debt declined to $147.35 billion at end-March from $147.65 billion a quarter earlier and remained manageable.

Key debt indicators remained sound. External debt as a share of gross domestic product (GDP) improved slightly to 30 percent from 30.3 percent in the previous quarter, despite slower economic growth.

Liquidity conditions also strengthened. Short-term external debt based on the remaining maturity concept (STRM) declined to $25.50 billion, while gross international reserves remained ample at $106.64 billion.

This is equivalent to 4.18 times STRM, indicating a strong capacity to meet near-term external commitments and a robust reserve adequacy position relative to emerging economy peers.

Debt service ratio likewise remained moderate at 9.5 percent, although higher than the 8.5 percent recorded a year ago due to increased principal payments.

The slight quarter-on-quarter decline in external debt was driven by lower non-resident holdings of Philippine debt securities, reflecting more cautious investor sentiment and tighter financing conditions for emerging markets during the quarter.

Year-on-year, external debt increased slightly from the end-March 2025 level of $146.74 billion. The rise was driven mainly by new borrowings by the National Government and private sector, reflecting ongoing financing for development priorities and continued support for trade and business activity.​

Overall, the external debt profile remains resilient, with developments primarily reflecting market-driven adjustments and financing requirements. Bangko Sentral ng Pilipinas