PH attracts more foreign investments in Q1 2025

The Philippines saw continued momentum in foreign investment inflows in the first quarter of 2025, resulting in a higher net external liability position, according to new data from the Bangko Sentral ng Pilipinas (BSP).

The BSP reported that net external liabilities reached USD69.3 billion as of March 2025, a 5.8% increase from USD65.5 billion at the end of 2024. This growth stemmed from a rise in foreign investments into the Philippines, which outpaced the country's overseas financial activity.

Total external financial liabilities climbed to USD326.8 billion, a 2.7% gain from the previous quarter, while the country’s external financial assets also grew 1.9% to USD257.5 billion.

Analysts view the rise in liabilities as a reflection of investor confidence, with global stakeholders increasingly channeling capital into the Philippines’ public and private sectors. A majority—56.1%—of the inflows were directed toward “other sectors,” including non-financial corporations, households, and nonprofit institutions. Government-issued securities and loans accounted for 28.6%, while the banking sector received 14.1% of total liabilities.

Compared to the same period last year, the net external liability position expanded by 17.2%, supported by a 7.4% year-on-year rise in external financial liabilities and a 5.1% increase in external assets.

The country’s external assets, which serve as a buffer against market shocks, remain healthy. Reserve assets continue to account for the largest portion at USD106.7 billion, or 41.4% of the total. Other notable asset classes include debt instruments (USD42.1B), equity capital (USD32.6B), and currency and deposits (USD17.7B).

The BSP emphasized that the data point to a well-diversified investment landscape, underlining the country’s growing interconnectedness with global markets. While liabilities rose, they reflect the Philippines' strong engagement with foreign investors and institutions, and its growing role as a viable destination for global capital.