Phl net external liability hits $68 B in June

The country’s external financial footprint expanded further in the second quarter, with the Bangko Sentral ng Pilipinas (BSP) reporting that stronger inflows of foreign capital drove the Philippines’ net international investment position (IIP) deeper into deficit.

- By KEISHA TA-ASAN

The IIP, which tracks the value of foreign financial assets and liabilities at a given point in time, showed the Philippines holding a net external liability of $68.3 billion as of end-June. This was up by 44.1 percent from $47.4 billion a year earlier and 9.8 percent higher than the $62.2 billion posted in March.

“The increase was driven by inward foreign investments outpacing the country’s own investments abroad,” the BSP said in a statement.

As of June, foreign investments in Philippine assets climbed by 2.7 percent quarter-on-quarter to $325.2 billion, while Philippine residents’ investments in overseas assets grew at a slower pace of 0.9 percent to $256.9 billion.

According to the BSP, the IIP is an important gauge of the economy’s financial ties with the rest of the world, serving as a measure of both external vulnerability and resilience.

By sector, general government borrowings accounted for $88.4 billion or 27.2 percent of total foreign investments in Philippine assets, while banks held $42.5 billion (13.1 percent).

Other sectors, including corporations and households, cornered the largest share at $190.4 billion (58.6 percent). The BSP itself carried $3.9 billion, or 1.2 percent.