The Central Bank of the Philippines published preliminary Balance Sheet Approach (BSA) data for Q1 2025 showing the domestic economy’s net external liability increased by 5.4% to PHP 3.7 trillion from PHP 3.5 trillion in Q4 2024. The larger net liability position was driven by higher nonresident holdings of government-issued securities and growth in loans extended by nonresidents to the government, alongside rising foreign borrowings by other depository corporations. The general government’s net debtor position expanded, reflecting increased government security holdings by other financial and depository corporations. Government securities remained around three-fourths of the general government’s obligations, and more than two-thirds of these obligations were denominated in domestic currency. Households posted a slight increase in their net creditor position supported by higher investments in equity and investment fund shares issued by other financial corporations, although lower bank deposits and currency holdings and higher bank loans moderated the improvement; gross financial assets were nearly three times household obligations. The central bank noted that the BSA is released one quarter later than the International Investment Position because the latter is a key input to the BSA alongside other sectoral balance sheet data sources.
Central Bank of the Philippines 2025-09-30
Central Bank of the Philippines reports net external liability rose 5.4% to PHP 3.7 trillion in Q1 2025 under the Balance Sheet Approach
The Central Bank of the Philippines released preliminary Q1 2025 data, showing a 5.4% increase in the domestic economy's net external liability to PHP 3.7 trillion. This rise was due to higher nonresident holdings of government securities and increased foreign borrowings by depository corporations. The general government's net debtor position expanded, while households saw a slight increase in their net creditor position due to higher investments in equity and investment fund shares.