Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Debt-to-GDP ratio projected to peak at 66.8% in 2023

by
June 30, 2022
in Investing News
0
Debt-to-GDP ratio projected to peak at 66.8% in 2023
0
SHARES
9
VIEWS
Share on FacebookShare on Twitter
PHILIPPINE STAR/ MICHAEL VARCAS

THE debt-to-gross domestic product (GDP) ratio is expected to peak at a “manageable” 66.8% in 2023, but is unlikely to return to pre-pandemic levels in the near term, the Philippine Institute for Development Studies (PIDS) said in a report on Thursday.

At the end of the first quarter, the debt-to-GDP ratio was 63.5%, exceeding the 60% threshold that multilateral lenders consider suitable for developing economies. 

The ratio was 39.6% in 2019, but grew significantly as the government was forced to borrow in order to finance its pandemic spending.

The projection for 2025 is 66.4%.

“The debt increase resulted from a widening fiscal deficit triggered by a steep collapse in government revenue and a rise in public spending to support the country’s public health system and provide relief response to the pandemic,” PIDS said in its report.

It called the debt surge less of a worry in the absence of interest rate shocks, excessive foreign debt, and a steady decline in tax effort.

“There is also a ‘consensus view’ in the government and private sectors that the fiscal deficit will trend downwards, and interest-growth differentials will remain negative as GDP growth normalizes to pre-pandemic levels by 2022,” it said.

Fiscal adjustments for 10-, 20-, 30-year time horizons would entail either raising more revenue or reducing spending, PIDS said.

“For instance, in the 10-year time horizon computation or by 2031, additional annual increases in the primary balance need to range from 1.4 to 3.4% of GDP, assuming that the government has reduced the primary deficit to its pre-pandemic level of 0.81% of GDP.”

To ensure debt sustainability, PIDS said that fiscal policy reforms should be maintained, while policy governing medium- to long-term fiscal consolidation should be carefully considered.

Additionally, the government should continue investing in infrastructure and human capital throughout the recovery from the pandemic. — Diego Gabriel C. Robles

ShareTweetPin

Related Posts

Stocks decline on profit taking, recession fears
Investing News

Stocks decline on profit taking, recession fears

August 23, 2022
Peso climbs vs dollar as RTB offer starts
Investing News

Peso climbs vs dollar as RTB offer starts

August 23, 2022
PNR cancels bids for 3 projects after finding them ‘non-feasible’
Investing News

PNR cancels bids for 3 projects after finding them ‘non-feasible’

August 23, 2022
Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Next Post
Local court convicts NDFP spokesperson, 3 others for murder in 1975 shooting

Local court convicts NDFP spokesperson, 3 others for murder in 1975 shooting

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

NIA may open 50 irrigation projects to PPP

NIA may open 50 irrigation projects to PPP

June 26, 2022
I would probably not have played any other Grand Slam with my injury, says Nadal after French win

I would probably not have played any other Grand Slam with my injury, says Nadal after French win

June 7, 2022
Army battles Choco Mucho; PLDT faces Petro Gazz

Army battles Choco Mucho; PLDT faces Petro Gazz

July 18, 2022
The Importance of the Premier League to the UK Economy

The Importance of the Premier League to the UK Economy

June 21, 2022
Carlsen will not defend world title next year

Carlsen will not defend world title next year

July 21, 2022
BSP may need to be more hawkish to curb inflation

BSP may need to be more hawkish to curb inflation

June 27, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.