MANILA – The Philippines’ net external liabilities rose to US$69.3 billion by the end of March, driven by robust foreign investments that outpaced the country’s own investments abroad, according to the Bangko Sentral ng Pilipinas (BSP).
The country’s net external liabilities, which represent the difference between a country’s foreign assets and foreign liabilities, rose by 5.8 percent to US$69.3 billion by the end of the first quarter this year, against US$65.5 billion by the end of December 2024, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Monday night.
The BSP attributed this to the 2.7 percent jump in external financial liabilities to US$326.8 billion compared to the 1.9 percent rise in external financial assets to US$257.5 billion.
The bulk of 56.1 percent of the foreign investments in the country’s financial assets as of end-March was placed in “other sectors,” which are other financial corporations, non-financial corporations, households, and non-profit institutions.
This was followed by the 28.6 percent invested in securities issued by and loans of the national government.
Instruments issued by the banking sector came in third at 14.1 percent, and the 1.2 percent represented by Special Drawing Rights (SDRs), or the foreign exchange reserve assets maintained by the International Monetary Fund that the BSP holds.
On an annual basis, the country’s net external liability position expanded by 17.2 percent against US$59.1 billion by the end of March last year.
“This was on account of the 7.4 percent increase in external financial liabilities from US$304.2 billion, notwithstanding the 5.1 percent growth in external financial assets from US$245.1 billion,” the BSP said.
In turn, the country’s investments in foreign assets as of end-March are accounted for reserve assets at US$106.7 billion, or about 41.4 percent of the total.
This was followed by debt instruments like bonds at US$42.1 billion (16.3 percent); debt securities at US$38.4 billion (14.9 percent); equity capital at US$32.6 billion (12.7 percent); currency and deposits amounting to US$17.7 billion (6.9 percent); loans at US$11.4 billion (4.4 percent); equity securities at US$6.3 billion (2.4 percent); and others at US$2.3 billion (0.9 percent). / PNA