The Central Bank of the Philippines released its Q4 2024 Philippine Balance Sheet Approach report and statistical tables, showing the domestic economy’s net external liability position narrowed quarter-on-quarter to PHP 3.5 trillion from PHP 3.8 trillion, but rose year-on-year from PHP 2.5 trillion. The quarter-on-quarter improvement was driven by lower net external liabilities of non-financial corporations and a shift by other depository corporations from a net external liability to a net external asset position, partly offset by reduced net external assets of the central bank and higher external liabilities of the general government. Non-financial corporations’ net financial liability position eased to PHP 11.4 trillion (down 2.5% quarter-on-quarter) but expanded 12.4% year-on-year, while general government net financial liabilities increased to PHP 10.0 trillion (up 5.2% quarter-on-quarter and 16.1% year-on-year), with loans payable to nonresidents accounting for 89.2% of its outstanding loans. Households’ net financial assets rose to PHP 14.7 trillion (up 4.1% quarter-on-quarter and 10.4% year-on-year), other depository corporations’ net financial assets increased to PHP 1.5 trillion (up 10.3% quarter-on-quarter but down 14.7% year-on-year) and moved back into a net external asset position, and the central bank’s net financial asset position was broadly stable at PHP 1.3 trillion (up 1% quarter-on-quarter and 40.3% year-on-year).

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