In a statement, the central bank said this widening gap was due to a 3.8% rise in the country’s external financial liabilities, which outpaced the 1.3% growth in financial assets of Filipinos invested in or lent to foreign entities.
The Philippines’ total external financial liabilities now stand at $303.8 billion, while its external financial assets total $244.5 billion.
Key drivers of this increase I the country’s liabilities to the rest of the world include a 5.3% rise in net foreign portfolio investments of foreign fund managers to $90.3 billion and a 3.3% increase in net foreign direct investments to $126.6 billion, reflecting investor confidence in the Philippine economy.
Loans, rose by 3 percent to $74.7 billion from $72.5 billion, contributing to the rise in the total external financial liabilities of the country during the period, the central bank said.
On a year-on-year basis, the net external liability position expanded by 25.8% from $47.1 billion in March 2023, underscoring significant growth in the country's financial obligations to foreign entities.
