The Philippines' net external liability position widened to $54.9 billion as of end-March 2026, equivalent to 11.2 percent of gross domestic product (GDP), as the country's external financial assets declined faster than its liabilities, according to the Bangko Sentral ng Pilipinas (BSP).

In its latest International Investment Position (IIP) report, total external financial assets fell to $256.8 billion from $261.9 billion at end-2025, while external liabilities edged down to $311.5 billion from $312.7 billion. As a result, the country's net international investment position (IIP) deteriorated from -$50.8 billion to -$54.9 billion. The net liability position increased by 8.1 percent quarter-on-quarter and 2 percent year-on-year.

The BSP said the decline in external assets was driven mainly by lower reserve assets, reflecting its foreign exchange operations and the national government's drawdown of foreign currency deposits for debt servicing. Higher global bond yields, fueled by geopolitical uncertainties and concerns over the global economic outlook, also reduced the value of foreign-issued debt securities and other external assets.

Reserve assets remained the country's largest external asset at $106.6 billion, accounting for 41.6 percent of total external financial assets. Debt instruments comprised the largest share of external assets at $43.8 billion, followed by debt securities at $36.7 billion and equity capital investments at $35.8 billion.

On the liabilities side, loans totaled $82.8 billion, followed by debt instruments at $76.6 billion, equity capital investments at $57.6 billion, and debt securities at $47.2 billion.

By sector, the BSP remained the country's only net external creditor, with a net asset position of $106.6 billion. The national government posted the largest net liability position at $89.3 billion, while banks and other sectors recorded net liabilities of $3.8 billion and $76 billion, respectively.

Despite the wider net liability position, the central bank said the country's external accounts remained supported by sustained foreign investment inflows and continued access to external financing.

The IIP measures the value of financial assets owned abroad by Philippine residents against liabilities owed to nonresidents, serving as an indicator of the country's external financial stability.