The Philippines’ outstanding external debt declined slightly to $147.35 billion at the end of the first quarter of 2026 from $147.65 billion at the end of 2025, with key debt indicators remaining at manageable levels, according to the Bangko Sentral ng Pilipinas.

External debt as a share of gross domestic product improved to 30.0 percent from 30.3 percent in the previous quarter, while liquidity conditions strengthened as short-term external debt based on remaining maturity fell to $25.5 billion. 

Gross international reserves remained ample at $106.64 billion, equivalent to 4.18 times short-term external debt, underscoring the country’s strong capacity to meet near-term obligations.

The debt service ratio stood at 9.5 percent, slightly higher than the 8.5 percent recorded a year earlier due to increased principal payments. 

The BSP attributed the quarter-on-quarter decline in external debt mainly to lower non-resident holdings of Philippine debt securities amid cautious investor sentiment and tighter financing conditions for emerging markets.

Compared with the first quarter of last year, however, external debt edged up from $146.74 billion, driven largely by new borrowings by the National Government and private sector to support development programs, trade and business activities. The BSP said the country’s external debt profile remains resilient despite evolving market conditions.