PH net external liability drops to USD 58.2B in Q3

The Philippines’ net external liability position narrowed to USD 58.2 billion as of end-September 2025, down 13.2% from USD 67.0 billion at the end of the previous quarter, according to the Bangko Sentral ng Pilipinas (BSP) in its latest report.

This marked a significant improvement in the country’s International Investment Position (IIP), which reflects the balance between the Philippines’ foreign financial assets and liabilities.

The net liability now accounts for 12.1% of gross domestic product (GDP), down from 14.1% in the second quarter.

The improvement was attributed to both a 1.9% increase in total external financial assets and a 1.2% decline in foreign obligations.

As of September, Philippine foreign assets totaled USD 263.9 billion, while total foreign liabilities fell to USD 322.1 billion.

According to the BSP, the IIP is a key economic indicator that helps assess the country’s external vulnerability and resilience by measuring what the Philippines owns and owes in the international financial system.

A sectoral breakdown of Philippine external assets shows:

• USD 113.6 billion (43.0%) held by the BSP;
• USD 109.1 billion (41.3%) by other sectors such as corporations;
• USD 41.2 billion (15.6%) by banks.

On the liabilities side, the breakdown of foreign investments in Philippine assets includes:

• USD 188.9 billion (58.6%) held by other sectors;
• USD 89.9 billion (27.9%) by the general government;
• USD 39.4 billion (12.2%) by banks;
• USD 3.9 billion (1.2%) by the BSP.

Among external assets, reserve assets led at USD 109.1 billion, followed by debt securities (USD 38.9 billion), and equity securities (USD 7.7 billion).

Currency and deposit holdings stood at USD 42.4 billion.

On the liabilities side, loans accounted for USD 80.5 billion or 25.0% of the total, followed by debt instruments (USD 73.5 billion or 22.8%) and equity capital (USD 59.3 billion or 18.4%). Special Drawing Rights (SDRs) and other instruments made up the rest.

The BSP emphasized that the narrowing of net external liabilities enhances the country’s position amid global uncertainties, as it reflects increased foreign asset holdings and improved debt management.

For further information, stakeholders may contact the BSP Department of Economic Statistics at bspmail@bsp.gov.phor visit www.bsp.gov.ph.