Philippines' Debt-to-GDP Ratio
Debt-to-GDP ratio, which refers to government debt as a percentage of gross domestic product, is one of the closely watched indicators by international credit rating agencies as it demonstrates a country’s ability to pay off its debts. A lower debt-to-GDP ratio is generally perceived as favorable — an indicator of a robust economy — as it shows that a country is producing enough to be able to repay its debts.
From 2016 to 2017, the Philippines’ debt-to-GDP ratio was 42.1%, down from 44.7% in 2015. The 2016-17 ratio is the lowest level since 1996, the earliest year for which comparable data is available.
The Philippine government aims to sustain the yearly downward trend and it expects debt-to-GDP ratio to drop to 38.9% by 2022 when Pres. Rodrigo R. Duterte’s term ends. — via BusinessWorld Research
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