The country’s total external debt climbed to $137.018 billion (around ₱8.049 trillion) in 2024, up from $124.472 billion (around ₱7.312 trillion) in 2023, the World Bank Group (WBG) reported.

According to the WBG’s International Debt Report (IDR) 2025 published on Wednesday, Dec. 3, the Philippines’ total external debt last year hit a record high—topping the WBG’s records from 2010 to 2024.

The WBG report highlighted the Philippines among the domestic markets in low- and middle-income countries (LMICs) that have not only attracted local investors but have also become “attractive to international investors.”

“Their development has led to nonresidents borrowing in domestic currency in countries with well-established access to capital markets, such as in Argentina, Indonesia, Mauritius, Mexico, and South Africa, as well as newer issuances in Colombia, the Dominican Republic, Jamaica, the Philippines, and Türkiye,” the report added.

The report emphasized that the liberalization of capital markets in these economies has been instrumental in strengthening domestic markets and drawing in more international investors.

“Such participation can benefit the depth and liquidity of domestic financial markets, increase investor competition, and promote international standards. Multilateral organizations, including the World Bank, have played an important role in assisting countries with the development of their domestic financial markets,” it added.

The report added that the Philippines emerged among the top recipients of net inflows in 2024, alongside Türkiye, Indonesia, Ukraine, and India.

It also noted that multilateral lenders remained the biggest source of support for LMICs in 2024, though at a slower pace, with net inflows reaching $70.1 billion. Despite the overall decline, WBG lending—under the International Bank for Reconstruction and Development (IBRD) for developing countries like the Philippines and the International Development Association (IDA) for poorer countries—hit a record high of $36 billion, up 30.4 percent. They accounted for 51.3 percent of net flows from multilateral institutions—with Bangladesh, Kenya, Nigeria, the Philippines, and Ukraine receiving the largest shares. The European Union (EU) followed with $15.5 billion, driven mainly by assistance to Ukraine.

In contrast, Vietnam, Kazakhstan, Egypt, Argentina, and Azerbaijan posted the largest net outflows for the year.

“Net inflows from bondholders more than doubled in 2024,” the report said, rising to $6.8 billion from $3.2 billion in 2023—with the Philippines and Indonesia the largest recipients, at $5.2 billion and $3.5 billion, respectively. These gains were partially offset by $2 billion in outflows to Thailand.

“The Philippines also recorded a sharp contraction in inflows from private creditors in 2024, but these inflows remained positive at $985 million, down from $4.7 billion in 2023,” the report added.

Due to the government’s increased borrowing from both local and foreign lenders, compounded by the recent peso slump, the national government’s (NG) outstanding debt reached ₱17.562 trillion as of end-October, nearly exceeding the historic high of ₱17.563 trillion posted in July.

(Ricardo M. Austria)