The net external liability position of the Philippines widened by 29.9 percent to P2 trillion in the fourth quarter of 2022 from P1.5 trillion in the third quarter, the Bangko Sentral ng Pilipinas said Friday.
It said that by sector, non-financial corporations remained the largest net debtor in the domestic economy at P8.5 trillion in the fourth quarter, up from P8.1 trillion in the third quarter.
“This arose from the expansion in the NFCs’ gross external liabilities and its lower external assets. The sector’s external assets and liabilities were mostly comprised of loans and equity securities,” the BSP said in a statement.
It said the NFCs’ liabilities-to-GDP ratio decreased to 91.1 percent as the economy’s growth in nominal terms exceeded the increase in the sector’s gross financial liabilities.
“This resulted mainly from the rise in bank loans availed to sustain operations amid heightened consumer demand brought about by the improved economic outlook,” it said.
The government’s net debtor position widened to P8.2 trillion in the fourth quarter from P7.7 trillion in the previous quarter because of the sector’s deposit withdrawals from the BSP which it used to meet its higher operating expenditures.
The government remained partly insulated from exchange rate fluctuations as majority of its liabilities were funded by the domestic sectors.
It said despite the record-high debt levels, the growth in the GDP outpaced the increase in the government’s level of borrowings in the fourth quarter
The sector’s liabilities-to-GDP ratio for the quarter decreased to 62.7 percent.
Households continued to be the top creditor of the economy at P11.9 trillion in the fourth quarter, up from P11.4 trillion in the third quarter. The households’ net claims on the BSP, which were composed mainly of the sector’s currency holdings, increased.
