THE PHILIPPINES’ international investment position (IIP) was a net external liability of $69.3 billion at the end of March, the Bangko Sentral ng Pilipinas (BSP) said.
The BSP reported that the net external liability widened 5.8% at the end of the period from the $65.5-billion net liability at the end of December.
A year earlier, the net external liability position had been $59.1 billion. The deficit was 17.2% wider year on year.
The IIP reflects the value and composition of a country’s financial assets and liabilities, and gauges an economy’s external exposure.
“This development was driven by a 2.7% expansion in the country’s external financial liabilities, which outpaced the 1.9% growth in the external financial assets,” the BSP said in a statement.
Outstanding external financial liabilities rose 2.7% to $326.8 billion at the end of March, compared to the end of December.
“The country’s stock of external financial liabilities rose primarily due to a 6.1% increase in other investments, climbing from $92.2 billion at end-December 2024 to $97.8 billion by end-March 2025,” it said.
Net foreign portfolio investment rose 5.3% to $90.3 billion during the period, while net foreign direct investment was up 0.4% at $129.9 billion.
“The notable rise in other investments was attributable largely to higher net availments of foreign loans by residents, which elevated the outstanding level by 6.4% to $85.5 billion,” it added.
Nonresidents’ portfolio investments in debt securities rose 6.8% to $62.6 billion, the BSP said.
“This growth was driven by substantial net placements by nonresidents in long-term bonds issued by the National Government (NG), which were intended to support the NG’s general financing needs and other budgetary requirements,” it said. — Aubrey Rose A. Inosante