The country’s net international investment position (IIP) registered a net liability position of $28.5 billion as of end-June 2022, lower by 9.9 percent than the $31.6 billion recorded in end-March 2022.
This development was mainly driven by the contraction in external financial liabilities, which outpaced that of external financial assets. As of end-June 2022, total outstanding external financial asset stood at $229 billion, while total outstanding external financial liabilities amounted to $257.5 billion.
On a year-on-year basis, the country’s net liability position grew by 19.1 percent from $23.9 billion as of end-June 2021. This developed as total external financial assets decreased by 2.3 percent, which more than offset the decline in total external financial liabilities of 0.3 percent.
Almost half of residents’ total external financial claims were held by the BSP totaling $105.1 billion. However, this level was 6.1 percent lower than the $111.9 billion asset holdings as of end-March 2022. The Other Sectors’ external financial assets comprised 38.9 percent of the country’s total stock of financial assets at $89 billion. The remaining 15.3 percent of the total external financial assets of the country were held by banks at $35 billion.
The Other Sectors comprised the highest share of the country’s total external financial liabilities at 63.6 percent and amounting to $163.8 billion as of end-June 2022.
This level, however, was 6.3 percent lower than its outstanding liabilities in the previous quarter at $174.9 billion.
The National Government’s total external financial liabilities reached $60.1 billion and accounted for 23.3 percent of the Philippines’ outstanding external financial liabilities. Bank’s share reached 11.6 percent or $29.8 billion, while that of the BSP was 1.5 percent or $3.8 billion of the country’s total external financial liabilities.
