Central Bank of the Philippines reports net external liabilities widen to PHP 3.9 trillion in Q3 2024

The Central Bank of the Philippines published the Q3 2024 Philippine Balance Sheet Approach report showing the domestic economy’s net external liability position widened 33.8% quarter on quarter to PHP 3.9 trillion. The increase reflected higher net external liabilities of non-financial corporations and the general government, and a shift of other depository corporations to a net external liability position from a net external asset position, partly offset by a rise in the central bank’s net external assets. Year on year, the net external liability position also grew on the same broad drivers. By sector, non-financial corporations’ net financial liabilities increased 7.8% quarter on quarter to PHP 11.6 trillion, driven mainly by higher external equity and investment fund share financing and increased loans payable. The general government’s net financial liabilities rose 4.6% to PHP 9.8 trillion, supported by additional nonresident financing via debt securities and loans and higher domestic financial sector holdings of government securities, alongside lower government deposits with banks. Households’ net financial assets edged up 0.8% to PHP 14.1 trillion, while other depository corporations’ net financial assets increased 3.9% to PHP 1.64 trillion. The central bank’s net financial asset position remained broadly stable at around PHP 1.3 trillion, with a marginal 0.3% quarter-on-quarter increase and a year-on-year widening linked to higher gross international reserves and investments in debt securities issued by nonresidents.