The Philippines’ net external liability climbed 5.4 percent to P3.7 trillion in the first quarter of 2025 from P3.5 trillion in the previous quarter, data from the Bangko Sentral ng Pilipinas (BSP) showed Tuesday.
The increase in the local economy’s net external liabilities was led by nonresidents’ higher demand for government securities and growth in loans extended to the government, the BSP said.
Broken down, the general government’s net debtor position grew 4.5 percent, with government securities accounting for three-fourths of its total obligations. The BSP said more than two-thirds of these obligations were denominated in domestic currency, which partly insulated the sector from exchange rate volatility.
Meanwhile, households recorded a 1.9-percent increase in their net creditor position, supported by higher equity investments and investment fund shares issued by other financial corporations.
This was moderated by a decline in bank deposits and currency holdings, as well as an increase in bank loans.
The BSP noted, however, that households remained “highly solvent,” with their gross financial assets surpassing their obligations.
