Central Bank of the Philippines publishes Q2 2025 Balance Sheet Approach data showing net external liabilities rose 7.1% to PHP 3.7 trillion

The Central Bank of the Philippines released preliminary Q2 2025 Balance Sheet Approach (BSA) data showing the economy’s net external liabilities increased by 7.1% quarter on quarter, from PHP 3.5 trillion in Q1 2025 to PHP 3.7 trillion in Q2 2025. The increase in net liabilities to the rest of the world was attributed mainly to higher external financing of non-financial corporations and a widening net debtor position of the general government. Non-financial corporations’ net debtor position rose on the back of higher equity and investment fund share liabilities to nonresidents and other financial corporations, with loans remaining the sector’s primary funding instrument followed by equity securities. The rest of the world and other depository corporations were the sector’s major sources of financing, together accounting for nearly three-fourths of total outstanding liabilities. The general government’s net debtor position also widened due to increased holdings of government securities by other depository corporations, nonresidents, and other financial corporations, alongside higher loans owed to nonresidents; government securities remained its main funding instrument and 70.1% of its obligations were denominated in domestic currency. The update also notes a decline in the central bank’s investments in debt securities issued by nonresidents. The central bank published the Q2 2025 BSA report alongside supporting statistical tables and an infographic.