The country's net external liability position as of the fourth quarter of 2021 widened compared to the same period last year due to the expansion of the net external liability positions of the non-financial corporations (NFCs) and the general government.

In particular, the NFCs continued to post higher net borrowings from the rest of the world and other financial corporations (OFCs). The general government's net financial liability position also widened as the National Government (NG) continued to tap domestic and foreign funding to support its programs for socio-economic recovery given the extensive negative effects of the pandemic.

Meanwhile, households registered as the country’s highest net creditor, posting improvements in savings and investments as reflected in the following: a) increase in deposits with ODCs (composed mainly of banks); b) expansion in the households’ holdings of equity and investment fund shares issued by other financial corporations; c) increase in the insurance, pension and standardized guarantee schemes attributed to households; and d) buildup of domestic currency holdings.

Likewise, the other depository corporations net creditor position improved, brought about by the increase in the sector’s net financial assets with the GG and non-residents. Similarly, the Central Bank’s (CB) net creditor position expanded on account of its higher net external assets. This development was supported by the year-on-year increase in the peso equivalent of the CB’s reserve assets. BSP