“Despite increasing the planned deficit, the Philippine economy will outgrow its debt burden as economic expansion (GDP growth) outpaces the growth in the rate of borrowing. The DBM also claimed that compared with its Association of Southeast Asian Nations (Asean) neighbors, the Philippines continues to post a steady debt-to-GDP ratio. It cited Singapore whose debt-to-GDP ratio stood at 98.2 percent in 2016, although it is a developed economy. “The rule of thumb is that foreign reserves should cover at least three months’ worth of imports. These foreign reserves serve as a buffer to protect an economy from external crises such as severe foreign exchange depreciation,” it said.

Source: Manila Times July 14, 2017 16:41 UTC