The Philippines’ net external liability rose in end-March as foreign investments in the Philippines increased more than Philippine investments abroad.

The country’s international investment position (IIP), a broad measure of a country's financial assets and liabilities, registered a 5.8 percent increase in net external liabilities from $65.5 billion as of end-December 2024 to $69.3 billion by end-March.

This development was driven by a 2.7 percent expansion in the country’s external financial liabilities, which outpaced the 1.9 percent growth in the external financial assets. As of end-March 2025, the outstanding external financial liabilities stood at $326.8 billion, while outstanding external financial assets reached $257.5 billion.

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 on account of the 7.4 percent increase in external financial liabilities from $304.2 billion, notwithstanding the 5.1 percent growth in external financial assets from $245.1 billion.

Of the foreign investments in Philippine financial assets in end-March 2025, the biggest share of 56.1 percent was in the country’s “other sectors”, which covers other financial corporations, non-financial corporations, and households and non-profit institutions.

The second-biggest share of 28.6 percent was in securities issued by and loans extended to the National Government. The third-biggest share of 14.1 percent was in instruments issued by the banking sector.

The smallest share of 1.2 percent was held by the Bangko Sentral ng Pilipinas (BSP), mostly 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 of 15.8 percent. Bangko Sentral ng Pilipinas