Philippines Sees 5.8% Surge in Net External Liabilities Amid Strong Foreign Investments
Source: news.source.sunstar
The Philippines' net external liabilities increased by 5.8% to US$69.3 billion by the end of the first quarter of 2025, driven by a higher growth in foreign investments compared to the country's own investments abroad. The Bangko Sentral ng Pilipinas (BSP) reported that external financial liabilities grew by 2.7% to US$326.8 billion, while external financial assets rose by 1.9% to US$257.5 billion. The majority of foreign investments were directed towards other sectors, followed by the national government and the banking sector.
Key Points
Net external liabilities of the Philippines increased by 5.8% to US$69.3 billion by the end of March 2025.
Foreign investments outpaced the country's investments abroad, leading to the rise in net external liabilities.
External financial liabilities grew by 2.7% to US$326.8 billion, while external financial assets increased by 1.9% to US$257.5 billion.
56.1% of foreign investments were in 'other sectors', 28.6% in securities and loans of the national government, and 14.1% in the banking sector.
Annually, net external liabilities expanded by 17.2% from US$59.1 billion at the end of March 2024.
Reserve assets accounted for 41.4% of the country's total foreign investments.
