Manila: The robust growth of foreign investments in the Philippines compared to the country's investments overseas resulted in an increase in the country's net external liabilities by end of March.
According to Philippines News Agency, the country's net external liabilities rose by 5.8 percent to USD69.3 billion by the end of the first quarter this year against USD65.5 billion by the end of December 2024, based on data released by the Bangko Sentral ng Pilipinas (BSP) Monday night.
The BSP attributed this to the 2.7 percent jump in external financial liabilities to USD326.8 billion compared to the 1.9 percent rise in external financial assets to USD257.5 billion.
The bulk of 56.1 percent of the foreign investments in the country's financial assets as of end-March was placed in 'other sectors,' which are other financial corporations, non-financial corporations, households, and non-profit institutions.
This was followed by the 28.6 percent invested in securities issued by and loans of the national government.
Instruments issued by the banking sector came in third at 14.1 percent, and the 1.2 percent represented by Special Drawing Rights (SDRs), or the foreign exchange reserve assets maintained by the International Monetary Fund that the BSP holds.
On an annual basis, the country's net external liability position expanded by 17.2 percent against USD59.1 billion by the end of March last year.
'This was on account of the 7.4 percent increase in external financial liabilities from USD304.2 billion, notwithstanding the 5.1 percent growth in external financial assets from USD245.1 billion,' the BSP said.
In turn, the country's investments in foreign assets as of end-March are accounted for reserve assets at USD106.7 billion, or about 41.4 percent of the total.
This was followed by debt instruments like bonds at USD42.1 billion (16.3 percent); debt securities at USD38.4 billion (14.9 percent); equity capital at USD32.6 billion (12.7 percent); currency and deposits amounting to USD17.7 billion (6.9 percent); loans at USD11.4 billion (4.4 percent); equity securities at USD6.3 billion (2.4 percent); and others at USD2.3 billion (0.9 percent).
