The Philippines’ net external liability increased 5.8 percent to $69.3 billion as of end-March 2025 from $65.5 billion in December 2024, according to the Bangko Sentral ng Pilipinas (BSP).
The rise in the country’s International Investment Position (IIP) indicates that foreign investments into the Philippines grew faster than Philippine investments abroad, the BSP said.
The BSP attributed the increase to a 2.7-percent expansion in the country’s external financial liabilities, which reached $326.8 billion by end-March 2025. In comparison, outstanding external financial assets stood at $257.5 billion.
It said that on a year-on-year basis, the net external liability position grew by 17.2 percent from $59.1 billion as of end-March 2024. This was due to a 7.4-percent increase in external financial liabilities from $304.2 billion, despite a 5.1-percent growth in external financial assets from $245.1 billion.
Data showed that as of end-March 2025, the largest share of foreign investments in Philippine financial assets (56.1 percent) was in the country’s “other sectors,” encompassing other financial corporations, non-financial corporations, households, and non-profit institutions.
The second-largest share (28.6 percent) was in securities issued by and loans extended to the National Government.
The banking sector accounted for the third-largest share (14.1 percent) in instruments issued by banks. The smallest share (1.2 percent) was held by the BSP, primarily in the form of Special Drawing Rights (SDRs).
The BSP continued to hold the largest share of the country’s investments in foreign assets at 43.3 percent. The “other sectors” contributed the second-biggest share of 40.9 percent. The banking sector accounted for the smallest share at 15.8 percent.
