The Philippines saw its overall financial position in relation to the rest of the world improve in the second quarter of the year, the Bangko Sentral ng Pilipinas (BSP) reported.
The country’s net external liability position improved from April to June 2024, decreasing by 3.6 percent to P2.9 trillion from P3 trillion in the first quarter.
According to the BSP, the decline was primarily due to the central bank's stronger net external asset position but was partially offset by a rise in the general government's net external liability.
"The Central Bank's net financial asset position expanded by 28.6 percent quarter-on-quarter to P1.2 trillion from P1 trillion," the BSP said. This was "driven mainly by the expansion of the Central Bank's investments in debt securities issued by non-residents, as well as deposits with foreign banks."
However, the general government's net financial liability position increased by 3.4 percent to P10.2 trillion, from P9.9 trillion in the previous quarter.
The BSP said the rise was attributed to increased borrowing from non-residents through debt securities and loans, and a decrease in government deposits with the central bank.
The non-financial corporations sector also saw its net financial liability position widen by 2.3 percent to P9.8 trillion, mainly due to increased loans from domestic banks and reduced deposits within the banking system.
On a positive note, households increased their net financial asset position by 1.3 percent to P14 trillion, driven by growth in bank deposits and investments in equity and investment fund shares.
The BSP noted that the other depository corporations' net financial asset position increased by 12.7 percent to P1.6 trillion, largely due to increased loans to and reduced deposit liabilities from non-financial corporations.