Philippines' net foreign liability soars to $68.3 billion on strong inward investments
By Derco Rosal
Posting a double-digit growth, the Philippines registered a net foreign liability of $68.3 billion as of end-June, based on its international investment position (IIP).
According to the Bangko Sentral ng Pilipinas (BSP), this increase was driven by inward foreign investments outpacing the country’s own investments abroad.
The IIP reports the value of the country’s financial assets invested abroad and the liabilities owed to foreign investors at a specific point in time, including gold reserves.
To note, the end-June figure was 44.1 percent higher than the $47.4 billion net foreign liability a year earlier and up 9.8 percent from $62.2 billion in the first quarter.
The end-June result was driven by a 2.7 percent increase in foreign investments in Philippine assets, which climbed to $325.2 billion.
Meanwhile, Philippine investments abroad inched up 0.9 percent to $256.9 billion.
The IIP shows the country’s financial ties with the rest of the world and helps gauge external risk and strength by detailing what it owns and owes abroad.
The gap between assets and liabilities reflects the IIP’s net position, showing whether the country is a net creditor or a net debtor to the rest of the world.