Philippines’ net external liability narrows to $50.8 billion at end-2025

THE PHILIPPINES’ international investment position (IIP) narrowed at the end of 2025 as its external assets grew faster than its external liabilities, the Bangko Sentral ng Pilipinas (BSP) said.

The country’s IIP stood at a net liability of $50.829 billion at end-December, 2.47% narrower than the $52.114 billion logged as of September. It was also 0.67% smaller than the $51.173-billion net liability seen a year prior.

The IIP is a gauge of the economy’s external exposure. 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 lower net liability position reflected a faster growth in external assets relative to the increase in external liabilities,” the BSP said in a statement on Tuesday.

Investments in foreign assets rose by 1% quarter on quarter to $264.1 billion, while foreign investments in Philippine assets climbed by 0.4% to $314.9 billion. It was also up by an annual 5.4% and 4.4%, respectively.

“The country’s stock of external financial assets rose as of end-December 2025, driven by increases across major asset components,” the BSP added.

Broken down, the country’s external financial assets grew year on year as residents’ investments in foreign-issued debt securities went up by 14.1% to $37.3 billion and reserve assets rose 4.3% to $110.8 billion.

This also came amid a 9.6% climb in residents’ equity capital investments in their foreign affiliates to $35.6 billion and the 15.7% increase in residents’ holdings of foreign equity securities to $7.6 billion.

Bulk of the country’s investments were held by the central bank with 43.5% or $114.9 billion. Deposit-taking corporations, excluding the BSP, had 15.7% or $41.4 billion, while other sectors accounted for 40.8% or $107.9 billion of the total.

By type of instrument, most of residents’ foreign investments were reserve assets amounting to $110.8 billion or 42% of the total, followed by debt instruments at $42 billion (15.9%) and debt securities at $37.3 billion (14.1%).

The rest were equity capital at $35.6 billion (13.5%), currency and deposits at $16.7 billion (6.3%), loans at $11.7 billion (4.4%) and equity securities at $7.6 billion (2.9%).

Meanwhile, the country’s external financial liabilities rose amid the increase in nonresidents’ investments in debt instruments to $75.3 billion, up 8.4% year on year, as well as the 7.6% climb in residents’ outstanding foreign loans to $81.6 billion and the 9.4% growth in nonresidents’ holdings of debt securities to $48.6 billion.

Of the total, 28.1% or $88.4 billion were held by the general government, 12.5% or $39.3 billion by deposit-taking corporations, excluding the BSP, 1.2% or $3.9 billion by the central bank, and 58.2% or $183.3 billion by other sectors.

Foreign loans made up 25.9% or $81.6 billion of foreign investments in Philippine assets during the period, followed by nonresidents’ investments in debt instruments with $75.3 billion (23.9%), equity capital with $59.3 billion (18.8%), debt securities with $48.6 billion (15.4%), equity securities with $35.2 billion (11.2%) and special drawing rights with $3.8 billion (1.2%).

At end-December, the country’s net liability position made up 10.4% of its gross domestic product, lower than the 10.8% share during the previous quarter, the BSP said. — Katherine K. Chan