The Central Bank of the Philippines published preliminary end-December 2024 international investment position data showing the Philippines remained a net external debtor with net liabilities of USD 65.5 billion, down 10.2% from USD 72.9 billion at end-September 2024. The improvement reflected a 3.4% fall in external financial liabilities that outpaced a 1.4% decline in external financial assets, leaving total liabilities at USD 318.2 billion and total assets at USD 252.7 billion. Quarter-on-quarter, the decline in liabilities was driven mainly by foreign portfolio investment falling 8.2% to USD 96.3 billion and foreign direct investment falling 2.0% to USD 129.3 billion. Portfolio equity holdings declined 14.1% to USD 37.6 billion alongside a drop in the Philippine Stock Exchange Index to 6,528.79 from 7,272.65, while portfolio debt securities fell 3.9% to USD 58.7 billion amid net selling of national government debt in the secondary market and net repayments. The contraction in assets was led by reserve assets falling 5.7% to USD 106.3 billion. Year-on-year, net external liabilities rose 29.0% from USD 50.7 billion at end-December 2023, as liabilities expanded 8.5% (including growth in portfolio debt securities, intercompany-related loans, and direct investment debt instruments) while assets increased 4.2% with reserve assets rising to USD 106.3 billion from USD 103.8 billion.
Central Bank of the Philippines reports net international investment position narrows to USD 65.5 billion net liabilities at end-December 2024
The Central Bank of the Philippines reported a 10.2% decrease in net external liabilities to USD 65.5 billion at end-December 2024, driven by a 3.4% fall in external financial liabilities. The decline was primarily due to reductions in foreign portfolio and direct investments, while reserve assets fell 5.7% to USD 106.3 billion. Year-on-year, net external liabilities increased 29.0% from USD 50.7 billion at end-December 2023.