APD | Preliminary international investment position posts net liability position of US$48.8 Billion

By APD writer Melo M. Acuña

MANILA,March.30(APD)– The country’s net international investment position (IIP) registered a net external liability position of US$48.8 billion as of end-December 2018 ,which is 39 percent higher than the US$35.1 billion net external liability position as of end-September 2018.

In a statement released by the Bangko Sentral ng Pilipinas Friday afternoon disclosed that the higher negative balance in the country’s net IIP came from the 9.1 percent increase in the country’s total external financial liabilities to US$224.4 billion.  This is more than offset the 2.9 percent growth in total external financial assets, which posted US$175.6 as of end December 2018.

The increase in the country’s external financial liabilities was kept afloat by the 17.3 percent rise in foreign portfolio investments (FPI) to US$87.6 billion from US$74.7 billi0on as of end-September 2018.  It was revealed foreign direct investments (FDI) reached US$ 83 billion while other investments also posted positive growth and reached US$53.6 billion.   

According to the same statement, the country’s higher external financial assets was mostly due to the accumulation of reserve assets which grew to US$ 79.2 billion as of end-December 2018, from US$74.9 billion as of end-September.  This was further complemented by the 5.9 percent increase in portfolio investments and the 0.5 percent growth in other investments.  The combined increases in reserve assets and portfolio and other investments more than offset the declines in direct investments (0.9 percent) and financial derivatives (19.8 percent).

Across sectors, only the Bangko Sentral ng Pilipinas (BSP) posted a net external asset position which amounted to US$78.1 billion as of December 31,2018.

The BSP held the highest share of the country’s total external claims from the rest of the world at 45.2 percent (US$79.4 billion) as of end-December 2018.  The Other Sectors’ outstanding claims from non-residents amounted to US$67.1 billion, representing more than one-third of the country’s total external assets, while Banks accounted for the remaining 16.6 percent of the Philippines’ total external financial claims at US$29.2 billion as of year-end 2018.  

(ASIA PCIFIC DAILY)