The Philippines posted an improvement on its International Investment Position (IIP) as of end-September 2025 after net external liability declined to $58.2 billion.
Data released by the Bangko Sentral ng Pilipinas (BSP) Monday night showed that the latest IIP of the Philippines is a 13.2 percent improvement from the $67 billion at the end of the first half of this year.
“The lower net liability position reflects the expansion of external assets and decline in foreign obligations,” the BSP said in a report.
The report traced this positive development partly to the 1.9 percent rise of the country’s foreign asset investments to $263.9 billion, as well as the 1.2 percent rise in foreign investments in Philippine assets to $322.1 billion.
Of the total foreign investments of Philippine institutions during the first nine months this year, the bulk, at 43 percent, is accounted for by investments by the BSP, amounting to $113.6 billion; followed by those of Other Sectors, 41.3 percent or $109.1 billion; and banks at 15.6 percent or $41.2 billion.
In terms of foreign investments in Philippine assets, 58.6 percent is accounted for by Other Sectors, amounting to $188.9 billion; followed by those placed in debt securities issued by the general government, 27.9 percent or $89.9 billion; banks, $39.4 billion or 12.2 percent; and the BSP, 1.2 percent.
The BSP said IIP is "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 report said outstanding external financial liabilities went down due in part to the 9.5 percent drop in nonresident holdings of equity securities to $34.7 billion and 4.4 percent slip in their equity capital investments to $59.3 billion.
“These trends mirrored the subdued performance of the Philippine Stock Exchange index (PSEi). Valuation adjustments due to US dollar appreciation likewise contributed to the decline in the country’s stock of liabilities,” it said.
Compared to the $58.2 billion in end-September 2024, the BSP report said the country’s net external liability position went down 7.1 percent.
PNA PHOTO
