Philippines's Overall Balance (% of GDP): Net Lending/Borrowing Trends and Forecasts (1990-2029)

The Philippines has experienced fluctuating fiscal trends influenced by external shocks and policy adjustments. The late 1990s Asian Financial Crisis widened deficits to -3.5% by 2003, but fiscal reforms improved the balance, leading to surpluses in 2014 (1.3%). However, deficits returned with increased spending and global challenges.

The pandemic significantly widened the deficit to -6.2% in 2021. Forecasts for 2029 indicate a narrowing to -1.9%, driven by economic recovery and improved revenue measures, emphasizing the importance of sustained fiscal discipline.