In 2024, the ratio of national debt to gross domestic product (GDP) of the Philippines was approximately 57.06 percent. Between 1993 and 2024, the figure dropped by around 16.81 percentage points, though the decline followed an uneven course rather than a steady trajectory. The ratio is forecast to decline by about 4.59 percentage points from 2024 to 2030, fluctuating as it trends downward.The general government gross debt consists of all liabilities that require payment or payments of interest and/or principal by the debtor to the creditor at a date or dates in the future. Here it is depicted in relation to the country's GDP, which refers to the total value of goods and services produced during a year.

Philippines PH: External Debt: TDS: PS: Official Creditors data was reported at 4.401 USD bn in 2031. This records a decrease from the previous number of 4.476 USD bn for 2030. Philippines PH: External Debt: TDS: PS: Official Creditors data is updated yearly, averaging 1.815 USD bn from Dec 1970 (Median) to 2031, with 62 observations. The data reached an all-time high of 4.606 USD bn in 2028 and a record low of 25.774 USD mn in 1970. Philippines PH: External Debt: TDS: PS: Official Creditors data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Philippines – Table PH.World Bank.IDS: External Debt: Debt Outstanding, Debt Ratio and Debt Service: Annual. Public sector debt from official creditors includes loans from international organizations (multilateral loans) and loans from governments (bilateral loans). Loans from international organization include loans and credits from the World Bank, regional development banks, and other multilateral and intergovernmental agencies. Excluded are loans from funds administered by an international organization on behalf of a single donor government; these are classified as loans from governments. Government loans include loans from governments and their agencies (including central banks), loans from autonomous bodies, and direct loans from official export credit agencies. Debt service payments are the sum of principal repayments and interest payments actually made in the year specified. Data are in current U.S. dollars.

Inflation rates in the Association of Southeast Asian Nations (ASEAN) ranged from ** percent inflation in Myanmar to **** percent inflation in Thailand in 2025. Only a few countries are in the 2 to 6 percent range that many economists view as optimal for emerging economies. Effects of high inflation High inflation is generally detrimental to the economy. Prices tend to rise faster than wages, meaning that people and firms have less purchasing power. This in turn leads to slower growth in the gross domestic product (GDP). It also leads to a weaker currency. For countries with a positive trade balance this can be beneficial, because exports are relatively cheaper to foreign buyers. Through the same mechanism, net importers suffer from a weaker currency. Additionally, inflation makes a country’s national debt less expensive if the debt is denominated in the local currency. However, most of this debt is in U.S. dollars, so inflation makes the debt more difficult to service and repay. Risks of deflation With deflation, consumers and firms delay investments because they expect prices to be lower in the future. This slows consumption and investment, two major components of GDP growth. The most common example of this is Japan, where the GDP growth rate has been low for a long time due, in large part, to deflation. For this reason, countries like Brunei would rather see low and stable inflation than slight deflation.