PHL net external liability position narrows to $58.2 billion at end-September

THE PHILIPPINES’ international investment position (IIP) was at a net external liability of $58.2 billion as of September 2025, narrowing from the previous quarter, the Bangko Sentral ng Pilipinas (BSP) said.

Central bank data showed that end-September’s net liability position was 13.2% narrower than the $67 billion seen at end-June. It was also down by 7.1% from the $62.7 billion logged a year prior.

“The lower net liability position reflects higher external assets and lower foreign obligations,” the BSP said in a statement released late Monday.

This corresponds to 12.1% of the country’s gross domestic product, lower than the 14.1% share recorded a quarter prior.

The IIP is a gauge of the economy’s external exposure, providing a snapshot of the value of its foreign financial assets and liabilities at a given point in time. The net position refers to the difference between assets and liabilities and represents either a net claim on or a net liability to the rest of the world.

“The IIP serves as an important indicator of the country’s financial links with the rest of the world, helping to assess external vulnerability and resilience by showing what the country owns and owes internationally,” the central bank said.

The country’s investments in foreign assets increased by 1.9% to $263.9 billion at end-September from $259 billion at end-June and by 3.3% from $255.5 billion a year earlier.

“The country’s stock of external financial assets rose primarily due to a 2.9% increase in reserve assets from $106 billion in end-June 2025 to $109.1 billion in end-September 2025,” the BSP said.

Of the total, 43% or $113.6 billion came from the BSP, while 15.6% or $41.2 billion were from banks. Other sectors invested a total of $109.1 billion during the period or 41.3% of the total.

By type of instrument, the bulk of residents’ foreign investments were reserve assets valued at $109.1 billion (41.3% of the total), followed by debt instruments at $42.4 billion (16.1%), debt securities $38.9 billion (14.7%), equity capital at $36.7 billion (13.9%), currency and deposits at $15 billion (5.7%), loans at $11.9 billion (4.5%) and equity securities at $7.7 billion (2.9%).

Meanwhile, foreign investments in Philippine assets went down by 1.2% to $322.1 billion at end-September from $326 billion a quarter ago. Year on year, it climbed by 1.2% from $318.2 billion.

By sector, the general government accounted for 27.9% or $89.9 billion of the total external financial liabilities during the period. This was followed by banks with $39.4 billion (12.2%), the BSP with $3.9 billion (1.2%) and other sectors with $188.9 billion (58.6%).

Foreign loans made up 25% or $80.5 billion of foreign investments in Philippine assets at end-September. Other forms included nonresidents’ investments in debt instruments amounting to $73.5 billion (22.8%), investments in debt securities at $59.4 billion (18.4%), equity capital at $59.3 billion (18.4%) and equity securities at $34.7 billion (10.8%).

The national government remained a net debtor with $89.9 billion in liabilities as of Septmber, while other sectors, such as other financial corporations, nonfinancial corporations, and households and nonprofit institutions serving households, had $79.8 billion in external financial liabilities.

On the other hand, the central bank stood as a net lender during the period, extending $109.7 billion worth of resources worldwide, while banks lent $1.8 billion. — Katherine K. Chan