The Philippines’ net external liability position rose to USD 69.3 billion as of end-March 2025, reflecting increased foreign investments in the country outpacing the growth of Philippine investments abroad, according to the latest data on the country’s International Investment Position (IIP).
This marks a 5.8 percent increase from the USD 65.5 billion recorded at end-December 2024. The uptick was driven by a 2.7 percent expansion in external financial liabilities, which outpaced the 1.9 percent increase in external financial assets.
Total external financial liabilities stood at USD 326.8 billion as of end-March 2025. Total external financial assets reached USD 257.5 billion.
On a year-on-year basis, the net external liability widened by 17.2 percent from USD 59.1 billion recorded at end-March 2024. This reflects a 7.4 percent increase in external liabilities (from USD 304.2 billion) and a 5.1 percent growth in external assets (from USD 245.1 billion).
Breakdown of Foreign Investments in Philippine Assets
Foreign investors continued to show strong confidence in the Philippine economy, with investments distributed across several sectors:
- 1% of total foreign investments were directed to “other sectors”—including non-financial corporations, other financial corporations, households, and non-profit institutions.
- 6% were invested in securities issued by and loans to the National Government.
- 1% were in instruments issued by the banking sector.
The Bangko Sentral ng Pilipinas (BSP) accounted for the remaining 1.2%, primarily in the form of Special Drawing Rights (SDRs).
Philippine Investments in Foreign Assets
On the other hand, the composition of Philippine investments abroad remained stable:
The BSP held the largest share of the country’s external financial assets at 43.3%.
The “other sectors” accounted for 40.9%. The banking sector comprised 15.8% of foreign asset holdings.
The Philippines’ growing external position highlights the country’s dynamic participation in global financial markets, underscoring the importance of sound macroeconomic management to ensure long-term sustainability.
