THE Philippines’ external financial position improved at the end of 2025 as its net liability narrowed amid stronger asset growth, Bangko Sentral ng Pilipinas (BSP) data showed on Tuesday.
The country’s international investment position (IIP) hit a lower net external liability of $50.8 billion as the year ended, down 2.5 percent from $52.1 billion as of the end of September.
The ratio of net liabilities to gross domestic product improved to 10.4 percent from 10.8 percent in the previous quarter.
“The lower net liability position reflected a faster growth in external assets relative to the increase in external liabilities,” the central bank said in a statement.
Philippine investments abroad rose by 1.0 percent to $264.1 billion while foreign investments in domestic assets grew at a slower 0.4 percent to $314.9 billion.
The IIP is a measure of a country’s financial exposure to the rest of the world, reflecting the value of assets owned by residents abroad and liabilities owed to nonresidents.
A lower net liability position generally signals improved external resilience, as it indicates stronger capacity to meet international obligations.
On the asset side, the central bank remained the largest holder of foreign investments, accounting for $114.9 billion or 43.5 percent of total external assets. This was followed by other sectors with $107.9 billion (40.8 percent) and deposit-taking corporations with $41.4 billion (15.7 percent).
Meanwhile, foreign investments in Philippine assets were largely concentrated in the private sector. Other sectors held the biggest share at $183.3 billion or 58.2 percent, followed by the general government with $88.4 billion (28.1 percent) and deposit-taking corporations at $39.3 billion (12.5 percent).
The central bank accounted for a minimal 1.2 percent or $3.9 billion.
The IIP, the BSP said, serves as a snapshot of the country’s financial linkages with the global economy at a given point in time and is a crucial tool in assessing external vulnerability.
