PH ends 2024 with $65.5-B net external liability position

The Philippines’ international investment position (IIP) stood at a $65.5-billion net liability as of end-2024, wider than the previous year, as the country’s liabilities grew faster than its assets during the year, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.

The latest IIP position, the difference between external financial assets and liabilities, widened from the $50.7-billion net liability as of end-2023, but narrowed from the $72.9-billion net liability as of end-September 2024.

This comes as the total external financial liabilities for the year were recorded at $318.2 billion, higher than the $293.1 billion the previous year, but lower than the $329.3 billion as of end-September.

The BSP attributed the decrease to the lower nonresidents’ net placements in portfolio equity securities and equity capital, and the lower liabilities of the national government. Data released by the Bureau of the Treasury (BTr) showed that the sovereign debt was at P16.051 trillion as of end-December 2024, down from P16.090 trillion as of end-November 2024.

The banking sector accounted for 13.3% of the total external financial liabilities at $42.2 billion, while the BSP held 1.2% or $3.7 billion, mostly in the form of Special Drawing Rights (SDRs). Other sectors contributed the largest share with 58.0%.

In terms of external financial assets, the country ended the year with $252.7 billion, 4.2% higher than the $242.4 billion the previous year, but lower than the $256.4 billion as of end-September.

The BSP accounted for 43.9% or $110.8 billion of assets for the year, 5.9% lower than the 7.8-billion asset holdings in end-September due mainly to the 5.7% decline in reserve assets. The banking sector accounted for 15.2% or $38.5 billion, while other sectors accounted for 40.9% or $103.4 billion.—AOL, GMA Integrated News