Republic Of The Philippines 18-K/A Annual report (foreign governments) (amended)

Exhibit 99.E

Selected Economic Information of the Republic of the Philippines

	2019			2020			2021			2022			2023			2024(1)
	(₱ in billions, except as indicated)
GDP (at then-current market prices)		19,517.9			17,951.6			19,410.6			22,028.3			24,318.6			12,597.9	(11)
GDP (at constant 2018 prices)		19,382.8			17,537.8			18,540.1			19,945.6			21,051.8			10,723.5	(11)
GDP per capita, PPP concept (in $ at then-current market prices)(2)		9,365			8,416			9,230			10,548			11,453			12,367
GDP growth rate (%) (at constant 2018 prices)		6.1			(9.5	)		5.7			7.6			5.5			6.0	(11)
Consumer price inflation rate (2018 CPI basket)(3)		2.4			2.4			3.9			5.8			6.0			4.4	(4)
Government surplus/(deficit) as % of GDP (at then-current market prices)		(3.4	)		(7.6	)		(8.6	)		(7.3	)		(6.2	)		(4.9	)
Government debt at end of period as % of GDP (at then-current market prices)		39.6			54.6			60.4			60.9			60.1			60.9	(11)
Public sector borrowing requirement(5)		(660.2	)		(1,371.4	)		(1,670.1	)		(1,614.1	)		(1,512.1	)(6)		N/A
Consolidated public sector financial position(7)		(196.4	)		(976.4	)		(1,094.4	)		(804.9	)		(777.5	)(6)		N/A
Current account surplus/(deficit) as % of GDP (at then-current market prices)		(0.8	)		3.2			(1.5	)		(4.5	)		(2.6	)		(1.6	)(14)
Overall balance of payments position at end of period as % of GDP (at then-current market prices)(8)		(2.1	)		4.4			0.3			(1.8	)		0.8			0.2	(14)
Direct domestic debt of the Government (in million ₱)(9)(10)		5,127,600			6,694,687			8,170,414			9,208,387			10,017,930			10,573,116	(11)
Direct external debt of the Government (in million $)(10)(12)		51,252			64,562			69,803			75,436			82,976			83,712	(11)
Public sector domestic debt(13)		6,307.7			6,712.4			7,315.0			8,538.9			9,753.3	(6)		N/A
Public sector external debt(12)(13)		2,966.9			3,406.7			3,939.8			4,606.1			4,961.4	(6)		N/A
Unemployment rate (%)		5.1			10.3			7.8			5.4			4.3			3.1
Gross international reserves (in billion $)(10)(15)		87.8			110.1			108.8			96.1			103.7			106.7	(16)

Sources: Philippine Statistics Authority; Bureau of the Treasury; Department of Finance; Bangko Sentral.

Notes:

(1) Preliminary data as of June 30, 2024, unless otherwise stated.

(2) Figure represents annualized per capita GDP, PPP concept. Amounts in pesos have been translated into U.S. dollars using the average Bangko Sentral reference exchange rates for the applicable period.

(3) Effective February 4, 2022, the base year of the Consumer Price Index (“CPI”) was updated from 2012 to 2018. The rebasing of the CPI is done periodically (1) to ensure that the CPI market basket continues to capture goods and services commonly purchased by households over time; (2) to update expenditure patterns of households; and (3) to synchronize its base year with the 2018 base year of the GDP and other indices. 2022 figures are based on preliminary data as of July 31, 2022. 2022 data is an average of monthly inflation figures.

(4) Preliminary data as of July 31, 2024.

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(5) Represents the aggregate deficit or surplus of the Government, the Central Bank-Board of Liquidation (the “CB-BOL”), the Oil Price Stabilization Fund and the major GOCCs (as defined below), the debt of which comprises virtually all the debt incurred by GOCCs.

(6) Preliminary data as of December 31, 2023.

(7) Comprises the aggregated deficit or surplus of the Government, the CB-BOL’s accounts, the major GOCCs, the Social Security System, the Government Service Insurance System, Bangko Sentral, the GFIs and local government units.

(8) Overall balance of payments has been revised to reflect late reports, post-audit adjustments and final data from companies. See “Balance of Payments—Revisions” for a more detailed discussion of recent and pending revisions to previously reported data.

(9) Represents debt of the Government only and does not include other public sector debt. Includes direct debt obligations of the Government, the proceeds of which are on-lent to GOCCs and other public sector entities, but excludes debt guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government.

(10) Amounts in original currencies were translated into U.S. dollars or pesos, as applicable, using the Bangko Sentral reference exchange rates at the end of each applicable period.

(11) Preliminary data as of June 30, 2024.

(12) Represents debt of the Government, the major GOCCs, the CB-BOL, Bangko Sentral and the GFIs.

(13) Includes public sector debt, whether or not guaranteed by the Government.

(14) Preliminary data as of March 31, 2024.

(15) Comprises the holdings by Bangko Sentral of gold reserves, foreign investments, foreign exchange and SDRs, including Bangko Sentral’s reserve position in the IMF.

(16) Preliminary data as of July 31, 2024.

Marcos Administration Policy

In his third State of the Nation Address on July 22, 2024, President Marcos delivered a comprehensive discourse on the significant accomplishments and future directives of his administration. The address covered critical sectors such as agriculture, water supply, climate change, infrastructure and health.

Starting with agriculture, President Marcos noted that local production remained a priority as well as providing support to farmers and preventing smuggled agri-fisheries products. On the topic of water supply, President Marcos noted that the government had enhanced irrigation systems, including solar-powered irrigation projects, and expects the Jalaur River Multi-Purpose Project to benefit agricultural land in the area. Addressing climate change, President Marcos emphasized various mitigation and related measures and cited the Philippines’ seat on the Board of the Loss and Damage Fund.

In terms of infrastructure development, President Marcos reported on developments in IT and power infrastructure, including completing Phase 1 of the National Fiber Backbone project. Transport infrastructure developments included completion and/or upgrades of key roads and bridges. The administration also cited enhancements at the Ninoy Aquino International Airport to accommodate more flights and passengers.

On health, new centers and specialty centers were established as part of the administration’s continuing efforts to decongest public hospitals. For social welfare, initiatives focused on improving children and mothers’ nutrition remain a priority under the administration’s various projects. The education sector focused on bridging the digital gap and reforming textbook approval processes as well as infrastructure efforts aimed to address both school and digital gaps. In addition, teachers’ welfare was highlighted.

On labor and employment, the administration pushed for continued improvements in order to create quality jobs through infrastructure development and business-friendly policies and emphasized investment-led growth through conducive business policies and comprehensive budget planning.

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President Marcos concluded by reaffirming his administration’s dedication to addressing challenges and leveraging opportunities to foster national progress and resilience.

Credit Ratings

In September 2022, Moody’s Investors Service (“Moody’s”) affirmed the Republic’s “Baa2” credit rating with a stable outlook, reflecting Moody’s view that the ongoing economic recovery of the Republic from the COVID-19 pandemic is unlikely to be hampered by challenging global credit conditions. Moody’s noted that the Government’s continued policy orthodoxy and commitment to reform amid political transition will help to assure gradual fiscal repair following the reversal of the strengthening of the Government’s fiscal and debt metrics resulting from the COVID-19 pandemic.

In November 2023, S&P Global Ratings (“S&P”) affirmed the Republic’s BBB+ rating with a stable outlook and expressed that the economic recovery of the Republic post the pandemic has remained robust, supported by, among others, fiscal reforms, ongoing efforts to address infrastructure gaps and improvements in the business climate. The stable outlook reflected S&P’s expectation that the economic recovery will sustain and fiscal deficits will decline over the next two years.

In June 2024, Fitch Ratings (“Fitch”) affirmed the Republic’s “BBB” rating with a stable outlook, reflecting the Republic’s strong medium-term growth, which supports a gradual reduction in government debt/GDP over the medium term and expects further growth to be supported by large investments in infrastructure and reforms to foster trade and investment, including public-private partnerships (PPPs).

International Relations

The following table shows the Republic’s capital participation in, and loans obtained from, major international financial organizations.

	Membership in International Financial Organization
Name of Organization	Date of Admission		Subscribed		Capital Share			Capital Paid In		Loans Outstanding
	(in millions, except for percentages)
International Monetary Fund(1)		December 27, 1945	SDR	2,042.9		0.43	%	$	1,501.11		—
International Bank for Reconstruction and Development(2)		December 27, 1945	$	1,434		0.44	%	$	102.1	$	13,105
Asian Development Bank (“ADB”)(3)		December 22, 1966	$	3,393.2		2.38	%	$	169.7	$	15,028
Asian Infrastructure Investment Bank (“AIIB”)(4)		December 28, 2016	$	979.1		1.01	%	$	195.8	$	2,218

Sources: The IMF; the WB; the ADB; the AIIB; Bureau of the Treasury.

Notes:

(1) As of July 31, 2024.

(2) As of June 30, 2024.

(3) As of March 31, 2024.

(4) As of August 27, 2024.

Relationship with the IMF

On June 10, 2024, IMF staff concluded a review of the economic and financial status of the Philippines and its future outlook. The review noted that the Philippine economy had shown resilience despite external and internal challenges, with GDP growth slowing in 2023 but expected to rebound in subsequent years. Risks to

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economic growth included geopolitical issues, high interest rates, and climate-related events, while positive measures such as attracting foreign investment and promoting business reforms were expected to boost long-term growth.

The review further noted that Bangko Sentral had tackled inflation through policy rate adjustments, bringing inflation within target ranges despite recent increases in food prices. Continued monitoring and policy strategies were deemed necessary to manage inflation risks. Additionally, adjustments in tariffs and import procedures were highlighted as key strategies for controlling food prices.

Fiscal consolidation was projected to proceed more gradually than initially planned, with a revised strategy focusing on higher capital expenditure and revenue increases over the medium term. The focus remained on reducing the fiscal deficit while enhancing social programs and education funding. Effective revenue mobilization and tax administration were considered essential to support this fiscal strategy.

Financial stability was assessed as robust, with healthy credit growth and strong banking sector buffers. However, close monitoring of bank exposures to sectors such as commercial real estate was seen as crucial given the high-interest-rate environment. Enhancing AML/CFT effectiveness and completing the FATF Action Plan were identified as vital steps for improving the business climate and encouraging foreign investment.

Recent reforms aimed to attract foreign investment, diversify the economy, and improve growth potential through the implementation of strategic projects and upskilling the workforce. Climate initiatives were also expected to benefit from measures promoting foreign ownership in renewable energy and ongoing green finance efforts.

World Bank Financing and Projects

In June 2024, the World Bank approved funding for two projects in the Philippines totaling $1,250.0 million, namely (i) $500.0 million for the Infrastructure for Safer and Resilient Schools Project to repair, rehabilitate, retrofit, reconstruct, and make site improvements to schools affected by natural disasters. The project aims to enhance learning environments for over 700,000 students, prioritizing high-risk regions such as Cordillera Administrative Region, Caraga, Central Luzon, Bicol region, Western Visayas, Central Visayas, Eastern Visayas, Davao region, and Soccsksargen. It also supports improving the Department of Education’s operations and maintenance tools for effective management post-disaster and (ii) $750.0 million for the Philippines Second Sustainable Recovery Development Policy Loan to support reforms that increase investment in public services, attract private investment in public infrastructure, particularly domestic shipping, promote renewable energy, protect the environment, and improve climate resilience. This loan program aims to boost the country’s competitiveness in marine transport, enhance plastic waste reduction and recycling, promote green transportation, and encourage the production and consumption of environment-friendly goods and services through public procurement.

Territorial Dispute over the West Philippine Sea

A confrontation occurred on June 17, 2024, between the Chinese Coast Guard and the Armed Forces of the Philippines near the Ayungin Shoal. The incident at the disputed Second Thomas Shoal resulted in a Filipino sailor sustaining a severed thumb and underscored escalating tensions between the two nations.

On July 2, 2024, the Republic and China held their first formal dialogue since the incident, convening the 9th Meeting of their Bilateral Consultation Mechanism on the South China Sea in Manila. Discussions focused on their respective positions on Ayungin Shoal and affirmed their commitment to de-escalating tensions.

On July 27, 2024, the Republic completed a resupply mission to its troops without incident under a new provisional agreement with China aimed at mitigating tensions.

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On August 8, 2024, the Philippine military reported that the Chinese Air Force executed “dangerous and provocative actions” over the South China Sea. Two People’s Liberation Army aircraft dropped flares and performed hazardous maneuvers while a Philippine Air Force patrol was over Scarborough Shoal. No Philippine crew were harmed. On August 19, 2024, tensions further escalated when the Philippines and China accused each other of ramming vessels and performing dangerous maneuvers in the West Philippine Sea.

Natural Disasters

Earthquakes and Volcanic Eruptions

On June 3, 2024, Mt. Kanlaon, an active volcano straddling the provinces of Negros Oriental and Negros Occidental, erupted, sending a 5-kilometre high ash cloud into the sky. PHILVOCS has indicated that further eruptions were possible and raised alert levels to 2.

Recent Economic Indicators

The following table sets out the performance of certain of the Republic’s principal economic indicators for the specified periods.

Years 2019 – 2024

	2019			2020			2021		2022			2023			2024(1)
GDP growth (constant 2018 prices) (%)		6.1			(9.5	)		5.7		7.6			5.5			6.0
GNI growth (constant 2018 prices) (%)		5.4			(11.5	)		1.7		9.9			10.5			8.8
Inflation rate (2018 CPI basket)(%)		2.4			2.4			3.9		5.8			6.0			4.4	(2)
Unemployment rate		5.1			10.3			7.8		5.4			4.3	(2)		3.1
91-day T-bill rate (%)		4.7			2.0			1.1		1.9			5.4			5.6	(2)
External position
Balance of payments ($ million)		7,843			16,022			1,345		(7,263	)		3,672			238
Export growth (%)		2.9			(9.8	)		12.5		6.4			(4.1	)		9.3
Import growth (%)		(0.2	)		(20.2	)		30.5		19.0			(5.0	)		1.6
External debt ($ billion)		83.6			98.5			106.4		111.3			125.4			128.7	(3)
International reserves
Gross ($ billion)		87.8			110.1			108.8		96.1			103.8			106.7	(2)
Net ($ billion)		87.8			110.1			108.8		96.1			103.7			106.7	(2)
Months of retained imports(4)		7.6			12.3			9.7		7.2			7.7			7.9	(2)
Domestic credit growth (%)		10.7			4.7			8.2		12.9			9.3			10.5

Sources: Philippine Statistics Authority; Bangko Sentral.

Notes:

(1) Preliminary data as of June 30, 2024, unless otherwise stated.

(2) Preliminary data as of July 31, 2024.

(3) Preliminary data as of March 31, 2024.

(4) Number of months of average imports of goods and payment of services and primary income that can be financed by reserves.

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GDP and Major Financial Indicators

Gross Domestic Product

In the first six months of 2024, GDP grew by 6.0%, compared with growth of 5.5% in the first six months of 2023. The largest contributor was growth in the construction sector, which recorded growth of 12.4% in the first six months of 2024. This was partially offset by a decrease in the rate of growth in the accommodation and food service activities sector, from growth of 27.7% in the first six months of 2023 to growth of 12.0% in the first six months of 2024 and a decrease in the rate of growth in the other services sector, from growth of 29.3% in the first six months of 2023 to growth of 9.8% in the first six months of 2024. GNI grew by 8.8% in the first six months of 2024 compared to growth of 9.2% in the first six months of 2023. Net primary income grew by 39.7% in the first six months of 2024 compared to growth of 86.7% during the same period in 2023.

The following table shows GDP by sector, net primary income and GNI at current market prices for the specified periods.

	Gross Domestic Product by Major Sector (at current market prices)												Percentage of GDP
	2019		2020		2021		2022		2023		2024(1)		2019		2024(1)
	(₱ in millions, except as indicated)												(%)
Agriculture, forestry and fishing sector		1,721,539		1,828,424		1,954,487		2,104,090		2,285,159		1,150,841		8.8		9.1
Industry sector
Mining and quarrying		161,656		137,060		185,371		280,249		232,080		118,451		0.8		0.9
Manufacturing		3,614,016		3,169,921		3,424,049		3,795,335		3,943,987		1,961,337		18.5		15.6
Electricity, steam, water, and waste management		607,881		611,051		650,961		746,104		844,360		518,671		3.1		4.1
Construction		1,535,727		1,180,199		1,347,309		1,615,247		1,832,725		1,027,490		7.9		8.2
Total		5,919,281		5,098,232		5,607,689		6,436,935		6,853,152		3,625,949		30.3		28.8
Service sector
Wholesale and retail trade; repair of motor vehicles and motorcycles		3,517,653		3,317,371		3,502,794		3,987,550		4,444,025		2,136,742		18.0		17.0
Transport and storage		757,661		551,045		605,204		807,323		977,399		505,703		3.9		4.0
Accommodation and food service activities		431,778		253,013		285,187		396,144		511,146		287,443		2.2		2.3
Information and communication		562,834		593,039		640,034		696,022		733,417		387,360		2.9		3.1
Financial and insurance activities		1,681,870		1,823,979		1,963,148		2,224,675		2,565,381		1,451,001		8.6		11.5
Real estate and ownership of dwellings		1,255,644		1,081,612		1,139,221		1,246,861		1,370,154		720,681		6.4		5.7
Professional and business services		1,219,757		1,137,558		1,222,489		1,350,881		1,487,291		749,801		6.2		6.0
Public administration and defense; compulsory social activities		890,688		950,590		1,027,079		1,119,710		1,188,487		559,970		4.6		4.4
Education		778,868		719,494		796,472		880,390		976,644		524,530		4.0		4.2
Human health and social work activities		329,862		325,260		385,750		411,577		460,645		233,664		1.7		1.9

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	Gross Domestic Product by Major Sector (at current market prices)												Percentage of GDP
	2019		2020		2021		2022		2023		2024(1)		2019		2024(1)
	(₱ in millions, except as indicated)												(%)
Other services		450,429		271,957		281,061		366,118		465,712		264,191		2.3		2.1
Total		11,877,043		11,024,918		11,848,438		13,487,251		15,180,301		7,821,085		60.9		62.1
Total GDP		19,517,863		17,951,574		19,410,614		22,028,276		24,318,611		12,597,876		100.0		100.0
Net primary income		1,954,197		1,360,427		690,388		1,294,379		2,670,713		1,520,674
Total GNI		21,472,060		19,312,001		20,101,002		23,322,655		26,989,325		14,118,550
Total GDP ($ billions)(2)		376.8		361.8		394.1		404.4		437.1		221.5
Per capita GDP, PPP concept ($)(3)		9,365		8,416		9,230		10,548		11,453		12,367

Source: Philippine Statistics Authority.

Notes:

(1) Preliminary data for the first six months of 2024.

(2) Calculated using the average exchange rate for the period indicated. See “—Monetary System-Foreign Exchange System.”

(3) Figure represents annualized per capita GDP, PPP concept.

The following table shows GDP by sector, net primary income and GNI at constant 2018 market prices for the specified periods.

	Gross Domestic Product by Major Sector (at constant 2018 market prices)												Percentage of GDP
	2019		2020		2021		2022		2023		2024(1)		2019		2024(1)
	(₱ in millions, except as indicated)												(%)
Agriculture, forestry and fishing sector		1,783,855		1,780,391		1,775,210		1,783,735		1,804,907		854,610		9.2		8.0
Industry sector
Mining and quarrying		168,857		137,493		144,498		152,183		155,155		87,396		0.9		0.8
Manufacturing		3,620,456		3,266,302		3,556,426		3,729,157		3,779,245		1,979,274		18.7		18.5
Electricity, steam, water, and waste management		591,312		589,213		615,591		647,222		684,918		353,433		3.1		3.3
Construction		1,507,244		1,122,308		1,235,106		1,385,186		1,506,784		795,790		7.8		7.4
Total		5,887,869		5,115,316		5,551,622		5,913,748		6,126,102		3,215,892		30.4		30.0
Service sector
Wholesale and retail trade; repair of motor vehicles and motorcycles		3,489,299		3,275,537		3,413,864		3,710,785		3,913,420		1,809,333		18.0		16.9
Transport and storage		742,347		515,149		547,807		679,371		767,603		395,647		3.8		3.7
Accommodation and food service activities		425,692		231,811		248,404		329,124		405,418		215,402		2.2		2.0
Information and communication		557,007		585,185		638,971		690,072		719,615		385,888		2.9		3.6

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	Gross Domestic Product by Major Sector (at constant 2018 market prices)												Percentage of GDP
	2019		2020		2021		2022		2023		2024(1)		2019		2024(1)
	(₱ in millions, except as indicated)												(%)
Financial and insurance activities		1,676,448		1,769,952		1,854,248		1,987,008		2,161,095		1,174,679		8.6		11.0
Real estate and ownership of dwellings		1,238,469		1,031,275		1,054,235		1,108,167		1,152,506		587,809		6.4		5.5
Professional and business services		1,182,159		1,068,769		1,136,507		1,240,353		1,323,643		671,047		6.1		6.3
Public administration and defense; compulsory social activities		871,564		911,188		959,685		1,003,397		1,024,588		511,575		4.5		4.8
Education		766,089		687,610		744,159		796,154		851,619		468,949		4.0		4.4
Human health and social work activities		323,261		306,903		351,472		364,223		391,151		207,428		1.7		1.9
Other services		438,691		258,758		263,899		339,470		410,089		225,223		2.3		2.1
Total		11,711,027		10,642,137		11,213,252		12,248,122		13,120,749		6,652,980		60.4		62.0
Total GDP		19,382,751		17,537,843		18,540,084		19,945,605		21,051,758		10,723,482		100.0		100.0

Source: Philippine Statistics Authority.

Note:

(1) Preliminary data for the first six months of 2024.

Principal Sectors of the Economy

Agriculture, Forestry and Fishing Sector

The agriculture, forestry, and fishing sector’s share to GDP was approximately 8.0% in the first six months of 2024 based on preliminary data, compared to approximately 9.2% in 2019.

Production in the agriculture, forestry, and fishing sector contracted by 0.9% in the first six months of 2024 based on preliminary data, compared to growth of 1.2% during the same period in 2023. Forestry and logging was the main contributor to the increase with 36.3% growth in the first six months of 2024 compared to a contraction of 34.0% during the same period in 2023. This was followed by production of coffee with 19.4% growth and sugarcane including muscovado sugar-making in the farm with 0.1% growth compared with growth of 1.7% and contraction of 13.7% for the same period in 2023, respectively. This was partially offset by a reversal in the production of mangoes at 0.6% in the first six months of 2024, compared to growth of 10.4%, during the same period of 2023.

Industry Sector

The industry sector consists of the mining and quarrying, manufacturing, construction, and electricity, steam, water and waste management subsectors. The industry sector’s share to GDP in the first six months of 2024 based on preliminary data was approximately 30.0%, compared to approximately 30.4% in 2019.

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In the first six months of 2024, the industry sector grew by 6.4% based on preliminary data, compared with growth of 3.0% during the same period in 2023. The higher rate of growth was primarily a result of higher growth across all subsectors. Construction grew by 12.4% in the first six months of 2024 compared to 6.4% during the same period in 2023. Electricity, steam, water, and waste management recorded 8.1% growth during the first six months of 2024, higher than the 5.7% growth it recorded during the same period in 2023. Manufacturing grew by 4.0% in the first six months of 2024 compared to 1.6% during the same period in 2023. Mining and quarrying grew by 6.4% in the first six months of 2024 compared to 3.0% during the same period in 2023.

Manufacturing Subsector

In the first six months of 2024, the manufacturing subsector grew by 4.0% compared to growth of 1.6% during the same period in 2023. The largest contributor to the subsector’s growth was growth in the manufacturing of furniture at 15.7% in the first six months of 2024 compared to a contraction of 15.2% for the same period in 2023. This was partially offset by a contraction in the manufacture of wood, bamboo, cane, rattan articles, and related products at 18.1% in the first six months of 2024 compared to growth of 5.9% for the same period in 2023.

Service Sector

The service sector includes transport, storage and communications; trade and repair of motor vehicles, motorcycles, personal and household goods; financial intermediation; real estate, renting and business activities; public administration and defense; compulsory social security; and other services subsectors. The service sector’s share to GDP is the largest at 62.0% in the first six months of 2024 based on preliminary data, an increase from 60.4% in 2019.

In the first six months of 2024, the service sector grew by 6.8% compared to growth of 7.1% in the same period of 2023. In the first six months of 2024, growth was recorded across the service sector, with accommodation and food service activities at 12.0%, other services at 9.8% and transportation and storage at 9.7%, compared to contractions of 27.7%, 29.3%, and 15.7%, respectively, in the same period in 2023, respectively.

Net Primary Income

Net primary income is a component of GNI but is not included in GDP. Net primary income is a significant factor in the Philippine economy, largely driven by OFW remittances. Net primary income includes estimates of the amount of compensation of OFWs, as well as investment income of OFWs from their properties. According to the latest figures from the PSA for years 2019, 2020, 2021, 2022, 2023 and the first six months of 2024, net primary income accounted for 9.0%, 7.0%, 3.3%, 5.4%, 9.6% and 10.5% of GNI, respectively.

In the first six months of 2024, net primary income grew by 39.7% compared to 86.7% growth during the same period in 2023. This lower growth was primarily due to the decreased growth in inflows arising from compensation and property income of 76.4% and 114.5% for the first six months of 2023 to 32.2% and 14.0% for the first six months of 2024, respectively.

E-9

Prices, Employment and Wages

Inflation

The following table sets out the CPI and inflation rate. Figures are based on the 2018 CPI basket.

	Changes in Consumer Price Index
	2019			2020			2021			2022			2023			2024(1)
Consumer price index		102.4			104.8			108.9			115.3			122.2			126.5
Inflation rate		2.4	%		2.4	%		3.9	%		5.8	%		6.0	%		4.4	%

Sources: Bangko Sentral; Philippine Statistics Authority.

Note:

(1) Preliminary data as of July 31, 2024.

Consumer Price Index

The discussion below is based on the 2018 CPI basket.

The average inflation rate as of July 2024 was 4.4%, lower than the average inflation rate of 4.7% as of July 2023. The lower rate of inflation as of July 2024 was due mainly to decreases in the rates of inflation for alcoholic beverages and tobacco from 10.9% as of July 2023 compared to 3.4% as of July 2024. This was offset by an increase in the rate of inflation for transport from a deflation of 4.7% as of July 2023 to an inflation of 3.6% as of July 2024.

Producer Price Index (“PPI”)

In January 2021, the 2018 PPI basket was released. The PSA rebased 2019 and 2020 PPI to base year 2018.

In 2021, the producer price index recorded an average deflation of 1.8%, compared to average deflation of 4.6% in 2020. Manufacture of coke and refined petroleum products posted an average inflation of 5.1% compared to deflation of 21.8% in 2020.

In 2022, the producer price index recorded an average inflation of 6.5%, compared to average deflation of 1.8% in 2021. This was primarily attributable to increases in the price indices for the manufacture of coke and refined petroleum products and the manufacture of chemical and chemical products, which registered an average inflation of 16.8% and 9.0%, respectively. The producer price indices for most other major industry groups likewise increased during this period.

In 2023, the producer price index recorded an average inflation of 1.4%, compared to average inflation of 6.5% in 2022. This was primarily attributable to decreases in the price indices of the manufacture of basic metals and the manufacture of coke and refined petroleum products, which registered an average deflation of 3.4% and 3.6%, respectively. This was partially offset by increases in the price indices of the manufacture of leather and related products, including footwear, and manufacture of beverages, which posted an average inflation of 4.3% and 9.4%, respectively.

The producer price index as of June 30, 2024 recorded an average deflation of 0.1%, compared to average inflation of 0.5% as of June 30, 2023. This was primarily attributable to decreases in the price indices for the manufacture of fabricated metal products, except machinery and equipment, the manufacture of wood, bamboo, cane, rattan articles, and related products and the manufacture of other non-metallic mineral products, which registered an average deflation of 4.0%, 3.3% and 2.2%, respectively.

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Employment and Wages

The following table presents selected employment estimates for various sectors of the economy.

	Selected Employment Information
	2019(1)		2020(2)		2021(3)		2022(4)		2023(5)			2024(6)
	(all figures in percentages except as indicated)
Employed persons (in thousands)(7)		41,961		39,837		43,988		46,890		50,525			50,278
Unemployment rate		5.1		10.3		7.8		5.4		4.3	(8)		3.1
Employment share by sector:
Agriculture, forestry and fishing sector		22.2		24.8		25.6		24.0		24.4			21.1
Industry sector
Mining and quarrying		0.4		0.5		0.4		0.3		0.4			0.6
Manufacturing		8.7		8.1		8.0		7.7		7.5			7.8
Construction		9.8		9.4		9.1		8.8		10.1			11.5
Water supply, sewerage, waste management and remediation activities		0.2		0.1		0.2		0.1		0.1			0.1
Electricity, gas, steam and air conditioning supply		0.2		0.2		0.1		0.2		0.2			0.2
Total industry sector		19.3		18.3		17.8		17.1		18.3			20.2
Service sector
Transportation and storage		8.2		7.4		6.5		6.7		6.9			7.1
Wholesale and retail trade; repair of motor vehicles and motorcycles		20.0		20.5		21.5		22.3		20.3			21.1
Finance and housing(9)		8.5		8.4		8.2		7.6		7.4			7.1
Other services(10)		21.9		20.6		20.4		22.2		22.7			23.5
Total service sector		58.4		56.9		56.6		58.9		57.3			58.7
Total employed		100.0		100.0		100.0		100.0		100.0			100.0

Sources: Philippine Statistics Authority; Annual Labor and Employment Status; Labor Force Survey.

Notes:

(1) Annual estimates were based on the final results of the 2019 Labor Force Survey.

(2) Annual estimates were based on the final results of the 2020 Labor Force Survey.

(3) Preliminary results as of December 2021 based on the 2021 Annual Estimates of Labor Force Survey December rounds.

(4) Preliminary results as of December 2022 based on the 2022 Annual Estimates of Labor Force Survey December rounds.

(5) Preliminary results as of December 2023 based on the 2023 Annual Estimates of Labor Force Survey December rounds.

(6) Preliminary results as of June 2024 based on the 2024 Annual Estimates of Labor Force Survey June rounds.

(7) Does not include OFWs.

(8) Preliminary data for 2023.

(9) Sum of financial and insurance activities, real estate activities and public administration and defense; compulsory social security subsectors.

(10) Sum of all other service sectors excluding transport and storage, wholesale and retail trade; repair of motor vehicles and motorcycles, finance and housing.

E-11

Regional tripartite bodies consisting of representatives of Government, businesses and workers establish minimum wage adjustments, which vary based on region and industry. Under Philippine law, minimum wage adjustments may only be increased once in any 12-month period. However, petitions for a minimum wage increase may be entertained when there is a supervening condition, such as an extraordinary increase in the prices of petroleum products and/or basic goods and services. The minimum wages for workers in Metro Manila and the surrounding areas are the highest in the country. As of July 2024, the minimum wage for non-agricultural workers in the Metro Manila, was ₱645 per day, while for agricultural workers, the minimum wage was ₱608 per day. In other regions of the Republic, the minimum wage for non-agricultural workers ranges from ₱361 to ₱520 per day, while for agricultural workers the minimum wage ranges from ₱336 to ₱479 per day.

In 2021, the total number of employed persons in the Republic, excluding OFWs, was estimated at 44.0 million. The unemployment rate was 7.8% in 2021, lower than the 10.3% unemployment rate recorded in 2020. The rate of labor force participation and the rate of underemployment were 63.3% and 15.9%, respectively, representing an increase from 59.5% in 2020, and a decrease from 16.2% in 2020, respectively.

In 2022, the total number of employed persons in the Republic, excluding OFWs, was estimated at 46.9 million. The unemployment rate was 5.4% in 2022, lower than the 7.8% unemployment rate recorded in 2021. The rate of labor force participation and the rate of underemployment were 64.7% and 14.2% respectively, representing an increase from 63.3% in 2021, and a decrease from 15.9% in 2021, respectively.

As of June 2024, based on preliminary data, the total number of employed persons in the Republic, excluding OFWs, was estimated at 50.3 million. The unemployment rate was 3.1% as of June 2024 based on preliminary data, lower than the 4.5% unemployment rate recorded as of June 2023. The rate of labor force participation was 66.0% as of June 2024, lower than 66.1% as of June 2023. As of June 2024, workers in the Republic were primarily employed in the service sector, representing 60.2% of the total employed population in the Republic, of which workers in the wholesale and retail trade and repair of motor vehicles and motorcycles comprised 21.1% of the total employed. Workers in the agriculture, forestry and fishing sector and the industry sector comprised 21.1% and 20.2%, respectively, of the total employed as of June 2024, compared to 23.8% and 18.1%, respectively, as of June 2023.

The following tables present employment information in the Republic by gender and by age group:

	Percentage Distribution of Population 15 Years Old and over by Employment Status, by Age Group
Age Group	June 2023		June 2024
	(Unemployed)
	(all figures in percentages)
Both sexes 15 — 24		30.6		35.9
25 — 34		35.4		35.2
35 — 44		15.1		14.2
45 — 54		11.5		9.4
55 — 64		6.6		4.2
65 and over		0.9		1.1
Not reported		0.0		0.0
Total for all ages		100.0		100.0

Sources: Philippine Statistics Authority; June 2024 Labor Force Survey.

E-12

	Percentage Distribution of Labor Force by Sex
Sex	June 2023		June 2024
	(all figures in percentages)
Labor Force
Male		58.0		57.9
Female		42.0		42.1
Total		100.0		100.0
Employed
Male		58.1		58.1
Female		41.9		51.9
Total		100.0		100.0
Unemployed
Male		54.4		50.2
Female		45.6		49.8
Total		100.0		100.0

Sources: Philippine Statistics Authority; June 2024 Labor Force Survey.

As of June 2024, 35.9% of the total unemployed population consisted of young people aged 15 to 24 years old, higher than the 30.6% recorded as of June 2023. In terms of gender, the female population represented 51.9% and 49.8% of the employed and unemployed workforce, respectively, as of June 2024, whereas the male population represented 58.1% and 50.2% of the employed and unemployed workforce, respectively, as of June 2024.

The PSA publishes statistics on poverty in the Republic measured in terms of a Government-determined per capita poverty threshold, which is the minimum income required for a family or individual to meet basic food and non-food requirements and a per capita subsistence threshold, which is the minimum income required for a family or individual to meet basic food requirements. According to the PSA, the proportion of families with per capita income below the per capita poverty threshold was 10.9% in 2023, a decrease from the 13.2% and 12.1% recorded in 2021 and 2018, respectively. The poverty incidence in 2023 was 15.5%, a decrease from 18.1% recorded in 2021 and 16.7% recorded in 2018.

Overseas Employment

The Republic accounts for estimates of the amount of compensation of OFWs, as well as investment income of OFWs from their properties as net primary income, and net primary income accounted for 10.5% of GNI in the first six months of 2024, respectively, according to the PSA.

National Savings

The following table sets out gross savings and gross domestic savings as a percentage of GDP.

	National Savings
Item	2019		2020		2021		2022		2023
	(%)
Gross savings (% of GDP)		31.8		24.8		20.2		22.5		27.3
Gross domestic savings (% of GDP)		14.3		9.7		9.2		9.1		9.2

Source: World Bank national accounts data.

E-13

Balance of Payments

The following table sets out the balance of payments of the Republic for the periods indicated.

	Balance of Payments
	2019			2020			2021			2022			2023			2024(1)
	($ in millions)
Current account(2)		(3,047	)		11,578			(5,943	)		(18,261	)		(11,206	)		(1,749	)
Exports		136,889			119,867			130,082			143,234			152,101			38,827
Imports		139,936			108,289			136,024			161,495			163,307			40,576
Goods, Services, and Primary Income		(30,996	)		(15,807	)		(35,444	)		(48,857	)		(42,252	)		(9,356	)
Total exports		108,143			91,627			99,630			111,856			119,963			30,981
Total imports		139,139			107,435			135,074			160,714			162,215			40,337
Goods and Services		(36,272	)		(19,909	)		(38,767	)		(53,806	)		(46,668	)		(10,724	)
Exports		94,741			80,034			87,798			98,832			103,601			26,768
Imports		131,013			99,943			126,565			152,638			150,269			37,493
Goods		(49,312	)		(33,775	)		(52,806	)		(69,701	)		(65,788	)		(14,662	)
Exports		53,477			48,212			54,228			57,710			55,316			14,041
Imports		102,788			81,987			107,034			127,412			121,104			28,703
Services		13,039			13,866			14,039			15,895			19,120			3,938
Exports		41,264			31,822			33,570			41,122			48,285			12,727
Imports		28,225			17,956			19,531			25,226			29,165			8,790
Primary Income		5,276			4,101			3,323			4,949			4,416			1,368
Receipts		13,402			11,594			11,832			13,024			16,362			4,212
Payments		8,125			7,492			8,509			8,076			11,946			2,844
Secondary Income		27,949			27,386			29,501			30,596			31,046			7,607
Receipts		28,746			28,240			30,452			31,378			32,138			7,846
Payments		797			854			950			781			1,092			239
Capital account(2)		127			63			80			23			67			16
Receipts		147			88			99			86			81			19
Payments		20			25			19			62			14			3
Financial account(3)		(8,034	)		(6,906	)		(6,433	)		(13,885	)		(15,415	)		(4,911	)
Net acquisition of financial assets(4)		7,297			13,286			10,261			2,533			2,836			3,012
Net incurrence of liabilities(4)		15,331			20,192			16,694			16,419			18,251			7,923
Direct investment		(5,320	)		(3,260	)		(9,732	)		(5,631	)		(4,959	)		(2,257	)
Net acquisition of financial assets(4)		3,351			3,562			2,251			3,861			3,905			712
Net incurrence of liabilities(4)		8,671			6,822			11,983			9,492			8,864			2,969
Portfolio investment		(2,474	)		(1,680	)		10,237			(1,684	)		925			(58	)
Net acquisition of financial assets(4)		2,402			6,567			7,809			(281	)		1,507			2,684
Net incurrence of liabilities(4)		4,876			8,246			(2,428	)		1,402			582			2,742
Financial derivatives		(173	)		(199	)		49			(48	)		(115	)		(61	)
Net acquisition of financial assets(4)		(874	)		(796	)		(449	)		(632	)		(779	)		(187	)
Net incurrence of liabilities(4)		(701	)		(596	)		(498	)		(584	)		(664	)		(126	)
Other investment		(67	)		(1,767	)		(6,987	)		(6,523	)		(11,266	)		(2,535	)
Net acquisition of financial assets(4)		2,417			3,953			649			(415	)		(1,797	)		(197	)
Net incurrence of liabilities(4)		2,484			5,720			7,636			6,108			9,469			2,338
Net unclassified items(5)		2729			(2,526	)		774			(2,911	)		(604	)		(2,941	)
Overall balance of payments position(7)		7,843			16,022			1,345			(7,263	)		3,672			238

Sources: Department of Economic Statistics; Bangko Sentral.

Notes:

(1) Preliminary data for the three months ended March 31, 2024.

E-14

(2) Balances in the current and capital accounts are derived by deducting debit entries from credit entries.

(3) Balances in the financial account are derived by deducting net incurrence of liabilities from net acquisition of financial assets.

(4) Negative values of Net Acquisition of Financial Assets indicate withdrawal/disposal of financial assets; negative values of Net Incurrence of Liabilities indicate repayment of liabilities.

(5) Net unclassified items is an offsetting account to the overstatement or understatement in either receipts or payments of the recorded balance of payments components relative to the overall balance of payments position.

(6) The overall balance of payments position is calculated as the change in the country’s net international reserves, less non-economic transactions (revaluation and gold monetization/demonetization). Alternatively, it can be derived by adding the current and capital account balances less financial account plus net unclassified items.

Overall Balance of Payments Performance

In the first three months of 2024, based on preliminary data, the overall balance of payments position of the Republic recorded a surplus of $238 million, compared to a surplus of $3.5 billion for the same period of 2023. The decline in surplus was primarily a result of decreased deficits in (i) the current account by 60.6% from $4.4 billion in the first three months of 2023 to $1.7 billion in the first three months of 2024, (ii) the goods, services and primary income account by 20.8% from $11.8 billion in the first three months of 2023 to $9.4 billion in the first three months of 2024, (iii) the goods and services account by 14.2% from $12.5 billion in the first three months of 2023 to $10.7 billion in the first three months of 2024, (iv) the goods account by 14.7% from $17.2 billion in the first three months of 2023 to $14.7 billion in the first three months of 2024, (v) the financial account by 17.1% from $5.9 billion in the first three months of 2023 to $4.9 billion in the first three months of 2024 and (vi) the other investment account by 54.5% from $5.8 billion in the first three months of 2023 to $2.5 billion in the first three months of 2024. This was partially offset by a 180.3% increase in the deficit of the direct investment account from $805 million in the first three months of 2023 to $2.3 billion in the first three months of 2024.

Current Account

In the first three months of 2024, according to preliminary data, the current account recorded a deficit of $1.7 billion, compared to a deficit of $4.4 billion in the first three months of 2023. The lower deficit was primarily due to a 54.5% decrease in the trade in other investment deficit from $5.6 billion in the first three months of 2023 to $2.5 billion in the first three months of 2024. However, this was partially offset by a 180.3% increase in the direct investment deficit from $805 million in the first three months of 2023 to $2.3 million in the first three months of 2024.

Goods Trade

In the first three months of 2024, according to preliminary data, the trade in goods deficit decreased by 14.7% to $14.7 billion, compared to $17.2 billion in the first three months of 2023. The lower deficit was primarily a result of a 10.3% increase in exports, which increased to $14.0 billion in the first three months of 2024 compared to $12.7 billion in the first three months of 2023. This was partially offset by a 4.1% decrease in imports, which decreased to $28.7 billion in the first three months of 2024 compared to $29.9 billion in the first three months of 2023.

E-15

The following table sets out the Republic’s exports of goods by major commodity group, as reported by the PSA.

	Exports by Major Commodity Groups
	Annual												Growth Rates						January-March				Growth Rates			Percentage of Total Exports
Commodities	2019		2020		2021		2022		2023(1)		2024(2)		2023(1)			2024(2)			2023(1)		2024(2)		2024(2)			2019		2024(2)
													(%)										(%)			(%)
	(S in millions, except percentages)
Agricultural products
Coconut products		1,294		1,230		1,947		2,563		1,538		482		(40.0	)		19.5			229		482		19.5			1.8		2.7
Sugar and products		67		66		76		6		5		1		(24.1	)		42.0			0		1		42.0			0.1		0.0
Fruits and vegetables		2,854		2,624		2,248		2,199		2,273		584		(3.4	)		11.1			321		584		11.1			4.0		3.2
Other agro-based products		952		864		1,000		1,123		958		252		(14.7	)		3.0			160		252		3.0			1.3		1.4
Total agricultural based products		5,167		4,784		5,271		5,891		4,773		1,318		(19.0	)					711		1,318					7.3		7.3
Forest products		358		297		377		357		270		42		(24.4	)		(44.7	)		49		42		(44.7	)		0.5		0.2
Mineral products		4,664		5,080		6,721		7,268		7,074		1,578		(2.7	)		(7.4	)		933		1,578		(7.4	)		6.6		8.8
Petroleum products		226		193		6		7		7		2		(4.6	)		(0.2	)		1		2		(0.2	)		0.3		0.0
Manufacturing
Electronic products		40,022		37,965		42,496		46,155		41,906		10,468		(9.2	)		13.4			5,665		10,468		13.4			56.4		58.2
Other electronics		3,469		2,724		3,432		3,504		3,744		862		6.8			(11.0	)		620		862		(11.0	)		4.9		4.8
Garments		928		652		742		854		706		150		(17.4	)		(12.2	)		110		150		(12.2	)		1.3		0.8
Textile yarns/fabrics		217		313		294		291		248		62		(14.8	)		(6.1	)		72		62		(6.1	)		0.3		0.3
Footwear		132		114		111		108		82		9		(24.6	)		(50.5	)		12		9		(50.5	)		0.2		0.1
Travel goods and handbags		745		420		647		706		567		103		(19.8	)		(16.6	)		83		103		(16.6	)		1.0		0.6
Wood manufacturing		251		187		205		167		70		17		(58.3	)		(20.2	)		16		17		(20.2	)		0.4		0.1
Furniture and fixtures		299		344		381		309		289		65		(6.4	)		(9.2	)		46		65		(9.2	)		0.4		0.4
Chemicals		1,508		1,339		1,939		1,880		1,771		456		(5.8	)		6.6			270		456		6.6			2.1		2.5
Non-metallic mineral manufacturing		267		226		296		309		287		70		(7.0	)		(9.8	)		50		70		(9.8	)		0.4		0.4
Machinery and transport equipment		4,128		2,249		2,371		2,215		2,415		629		9.0			(4.6	)		424		629		(4.6	)		5.8		3.5
Processed food and beverages		1,330		1,245		1,465		1,404		1,306		355		(7.0	)		16.0			189		355		16.0			1.9		2.0
Iron and steel		93		37		67		133		143		34		7.7			(24.6	)		28		34		(24.6	)		9.1		0.2
Baby carriages, toys, games and sporting goods		269		237		294		325		283		50		(13.0	)		(24.2	)		42		50		(24.2	)		0.4		0.3
Basketwork, wickerwork, and other articles of plaiting materials		31		43		63		45		38		8		(15.6	)		(8.1	)		6		8		(8.1	)		0.0		0.0
Miscellaneous		963		819		1,018		885		690		173		(22.1	)		(5.3	)		121		173		(5.3	)		1.4		1.0
Others		4,227		4,880		5,232		5,361		5,341		1,173		(0.4	)		(15.2	)		895		1,173		(15.2	)		6.0		6.5
Total Manufacturing		58,876		53,793		61,053		64,651		59,884		14,686		(7.4	)		6.2			8,619		14,686		6.2			83.0		81.7
Special transactions		1,637		1,067		1,265		1,400		1,520		349		8.6			(7.4	)		232		349		(7.4	)		2.3		1.9
Total exports		70,927		65,215		74,693		79,574		73,527		17,976		(7.6	)		4.8			10.545		17,976		4.8			100.0		100.0

Sources: Philippine Statistics Authority; Bangko Sentral.

Notes:

(1) Preliminary data.

(2) Preliminary data for the three months ended March 31, 2024.

E-16

The following table sets out the Republic’s exports of goods by destination, as reported by the PSA.

	Export of Goods by Destination												Percentage of Total Exports
	2019		2020		2021		2022		2023(1)		2024(2)		2019		2024(2)
	($ millions)												(%)
Country/Region
North America(3)		12,860		10,971		13,053		14,562		13,037		3,146		18.1		17.5
United States		11,567		10,018		11,852		13,072		11,548		2,813		16.3		15.6
Europe(4)		8,890		7,584		9,315		10,006		9,609		2,453		12.5		13.6
European Union(5)		7,779		6,536		8,062		8,709		8,377		2,132		11.0		11.9
Asia(6)		47,101		45,629		50,972		53,560		49,556		12,057		66.4		67.1
Japan		10,675		10,034		10,739		11,123		10,456		2,509		15.1		14.0
People’s Republic of China		9,814		9,830		11,562		10,980		10,925		2,158		13.8		12.0
Hong Kong		9,625		9,226		9,932		10,364		8,844		2,416		13.6		13.4
South Korea		3,241		2,855		2,576		3,125		3,534		1,028		4.6		5.7
Singapore		3,832		3,775		4,196		4,915		3,528		704		5.4		3.9
Taiwan		2,253		2,121		2,526		2,983		2,638		721		3.2		4.0
Southeast Asia(7)		6,958		6,469		7,962		8,563		7,692		2,000		9.8		11.1
Oceania(8)		527		463		632		690		684		158		0.7		0.9
Middle East(9)		831		629		570		642		715		203		1.2		1.1
Others(10)		717		569		721		757		731		162		1.0		0.9
Total		70,927		65,215		74,693		79,574		73,617		17,976		100.0		100.0

Sources: Philippine Statistics Authority; Bangko Sentral.

Notes:

(1) Preliminary data.

(2) Preliminary data as of March 31, 2024.

(3) Includes the United States, Canada, and others.

(4) Includes the European Union, Switzerland, the Russian Federation, and others.

(5) Includes Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Federal Republic of Germany, Finland, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden and Romania.

(6) Includes Japan, the People’s Republic of China, Hong Kong, South Korea, Singapore, Taiwan, Indonesia, Malaysia, Thailand, Brunei Darussalam, Vietnam, Myanmar, Laos, Bangladesh. Nepal, Pakistan, Sri Lanka, India, and others.

(7) Includes only Malaysia, Indonesia, Thailand, Brunei Darussalam, Cambodia, Vietnam, Myanmar and Laos.

(8) Includes Australia, New Zealand, Pacific Island, and others.

(9) Includes Iran, Iraq, Kuwait, Saudi Arabia, the United Arab Emirates (including Abu Dhabi), and others.

(10) Includes countries in Central America, South America (including Brazil), Africa, and others.

In the first three months of 2024, according to preliminary PSA data, total exports of goods increased by 4.8% to $18.0 billion, from the $10.5 billion recorded in the first three months of 2023. This was primarily a result of an increase in exports of manufactured goods, which comprised a 6.2% increase in the export of manufactured goods from $8.6 billion in the first three months of the first three months of 2023 to $14.7 billion in the first three months of 2024.

E-17

Imports of Goods

The following table sets out the sources of the Philippines’ imports of goods by commodity group.

	Imports by Major Commodity Groups
	Annual												Growth Rates						January-June				Growth Rates			Percentage of Total Imports
	2019		2020		2021		2022		2023(1)		2024(2)		2023(1)			2024(2)			2023		2024(2)		2024(2)			2019		2024(2)
													(%)										(%)			(%)
	($ in millions, except percentages)
Commodities
Capital goods		37,434		37,434		35,461		37,917		35,684		17,039		(5.9	)		(6.2	)		18,158		17,039		(6.2	)		33.5		27.7
Raw materials and Intermediate goods
Unprocessed raw materials		3,576		3,576		4,400		6,078		6,849		3,111		12.7			(11.7	)		3,522		3,111		(11.7	)		3.2		5.1
Semi-proccssed raw materials		37,041		37,041		43,583		46,250		38,584		19,072		(16.6	)		(1.5	)		19,362		19,072		(1.5	)		33.2		31.1
Raw materials and intermediate goods		40,617		40,617		47,984		52,328		45,432		22,183		(13.2	)		(3.1	)		22,885		22,183		(3.1	)		36.4		36.1
Mineral fuels and lubricants		13,362		13,362		13,625		23,795		19,922		10,102		(16.3	)		(0.6	)		10,039		10,102		0.6			12.0		16.5
Consumer goods
Durable		10,176		10,176		9,027		10,617		12,426		5,695		17.0			(3.4	)		5,895		5,695		(3.4	)		9.1		9.3
Non-durable		9,081		9,081		9,842		11,758		4		6,132		2.1			6.6			5,750		6,132		6.6			8.1		10.0
Total consumer goods		19,260		19,260		18,868		22,375		24,430		11,827		9.2			1.6			11,645		11,827		1.6			17.3		19.3
Special transactions(1)		920		920		947		805		478		256		(40.6	)		8.7			235		256		8.7			0.8		0.4
Total imports		111,593		111,593		116,885		137,221		125,946		61,407		(8.1	)		(2.5	)		62,962		61,407		(2.5	)		100.0		100.0

Sources: Philippine Statistics Authority; Bangko Sentral.

Notes:

(1) Preliminary data.

(2) Preliminary data as of June 30, 2024.

E-18

	Import of Goods by Source/Origin												Percentage of Total Imports
	2019		2020		2021		2022		2023		2024(1)		2019		2024(1)
	($ millions)												(%)
Country/Region
North America(2)		8,781		7,555		8,749		9,809		9,678		2,203		7.9		7.5
United States		8,072		6,922		7,751		8,917		8,418		1,940		7.2		6.6
Europe(3)		11,117		8,052		9,638		10,100		9,409		2,046		10.0		6.9
European Union(4)		8,531		6,036		7,673		7,796		7,794		1,742		7.6		5.9
Asia(5)		84,186		69,460		91,244		110,782		100,550		23,500		75.4		79.7
Japan		10,580		8,616		11,108		12,353		10,288		2,457		9.5		8.3
People’s Republic of China		25,496		20,868		26,799		28,217		29,392		7,107		22.8		24.1
Hong Kong		3,598		2,784		3,268		3,102		2,011		536		3.2		1.8
South Korea		8,477		6,895		9,351		12,321		8,488		2,105		7.6		7.1
Singapore		6,658		5,622		6,948		8,118		7,095		1,362		6.0		4.6
Taiwan		4,753		4,683		5,763		6,800		4,686		950		4.3		3.2
Southeast Asia(6)		22,465		18,153		25,483		32,109		30,581		6,901		20.1		23.4
Oceania(7)		2,213		1,443		2,310		3,599		4,225		770		2.0		2.6
Middle East(8)		3,704		1,867		3,965		5,344		5,545		1,382		3.3		4.7
Others(9)		717		1,592		1,974		3,391		2,348		964		0.6		3.3
Total		111,593		89,812		116,885		137,221		126,209		29,482		100.0		100.0

Sources: Philippine Statistics Authority; Bangko Sentral.

Notes:

(1) Preliminary data as of March 31, 2024.

(2) Includes the United States, Canada, and Mexico.

(3) Includes the European Union, Switzerland, the Russian Federation, and others.

(4) Includes Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Federal Republic of Germany, Finland, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden and Romania.

(5) Includes Japan, the People’s Republic of China, Hong Kong, South Korea, Singapore, Taiwan, Indonesia, Malaysia, Thailand, Brunei Darussalam, Vietnam, Myanmar, Laos, Bangladesh. Nepal, Pakistan, Sri Lanka, India, and others.

(6) Includes only Malaysia, Indonesia, Thailand, Brunei Darussalam, Cambodia, Vietnam, Myanmar and Laos.

(7) Includes Australia, New Zealand, Pacific Island, and others.

(8) Includes Iran, Iraq, Kuwait, Saudi Arabia, the United Arab Emirates (including Abu Dhabi), and others.

(9) Includes countries in Central America, South America (including Brazil), Africa, and others.

In the first six months of 2024, according to preliminary PSA data, total imports of goods decreased by 2.5% to $61.4 billion, from the $63.0 billion recorded in the first six months of 2023. This was primarily a result of the decline in commodity prices, which resulted in decreases in capital goods, unprocessed raw materials, and dairy products by 6.2%, 11.7%, and 11.8% to $17.0 billion, $3.1 billion and $622 million in the first six months of 2024, respectively, from $18.2 billion, $3.5 billion and $706 million in the first six months of 2023, respectively. However, this was offset by a 6.6% increase in the import of non-durable consumer goods from $5.8 billion in the first six months of 2023 to $6.1 billion in the first six months of 2024.

E-19

Services

The following table sets out the Republic’s services by sector for the periods indicated.

	Service Trade
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions)
Total services		13,039			13,866			14,039			15,895			19,120			3,938
Exports		41,264			31,822			33,570			41,122			48,285			12,727
Imports		28,225			17,956			19,531			25,226			29,165			8,790
Manufacturing services on physical inputs owned by others		4,339			4,152			5,033			5,443			4,913			1,190
Exports		4,339			4,152			5,033			5,443			4,913			1,190
Imports		—			—			—			—			—			—
Maintenance and repair services		(61	)		(11	)		(8	)		(70	)		(153	)		(42	)
Exports		110			59			42			112			100			25
Imports		171			70			50			181			253			67
Transport		(2,280	)		(2,525	)		(3,493	)		(3,967	)		(3,982	)		(636	)
Exports		2,883			1,669			1,568			2,688			3,040			1,097
Imports		5,164			4,194			5,060			6,655			7,022			1,734
of which: Passenger		787			460			163			520			758			111
Exports		1,674			708			353			1,065			1,501			410
Imports		887			248			190			544			743			299
of which: Freight		(3,046	)		(3,132	)		(3,989	)		(4,986	)		(4,974	)		(1,067	)
Exports		763			564			672			760			630			157
Imports		3,809			3,696			4,661			5,746			5,603			1,224
of which: Other		(282	)		147			333			498			233			320
Exports		446			396			542			863			909			531
Imports		468			249			209			364			676			211
Travel		(2,257	)		(2,298	)		(2,66	)		(744	)		(2,455	)		(164	)
Exports		9,781			1,791			600			4,174			9,118			2,912
Imports		12,038			4,088			3,262			4,918			6,664			3,076
Construction services		(5	)		(11	)		41			16			(94	)		(57	)
Exports		66			85			88			74			121			25
Imports		71			97			47			57			214			82
Insurance and pension services		(1,554	)		(1,314	)		(1,749	)		(1,893	)		(1,913	)		(442	)
Exports		90			75			101			100			86			17
Imports		1,644			1,389			1,850			1,993			1,999			458
Financial services		(539	)		(453	)		(211	)		(752	)		(1,126	)		(423	)
Exports		232			90			194			244			307			69
Imports		772			543			405			996			1,434			492
Charges for the use of intellectual property		(805	)		(504	)		(590	)		(539	)		(421	)		(132	)
Exports		28			15			33			12			30			1
Imports		833			519			623			551			452			134
Telecommunications, computer, and information services		4,766			4,414			4,179			4,591			5,162			1,234
Exports		6,098			5,930			6,300			6,673			7,098			1,778
Imports		1,332			1,515			2,121			2,082			1,936			543
Other business services		11,981			12,815			13,986			14,188			14,585			3,476
Exports		17,456			17,798			19,478			21,456			23,291			5,549
Imports		5,475			4,983			5,492			7,268			8,707			2,073

E-20

	Service Trade
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions)
Personal, cultural and recreational services		(26	)		(18	)		(103	)		(28	)		(27	)		25
Exports		161			136			112			127			153			59
Imports		187			154			214			155			126			35
Government services		(520	)		(381	)		(385	)		(351	)		(332	)		(90	)
Exports		19			22			22			21			26			6
Imports		539			403			407			372			358			96

Source: Bangko Sentral.

Notes:

(1) Preliminary data.

(2) Preliminary data for the three months ended March 31, 2024.

In the three months ended 2024, according to preliminary data, the trade-in-services account showed a 16.2% decline from a $4.7 billion surplus in the three months ended 2023 to a $3.9 billion surplus. This was primarily a result of a 122.0% decline in the surplus from travel, from a surplus of $0.7 billion in the three months ended 2023 to a deficit of $0.2 billion in the three months ended 2024. This was also the result of a 176.9% increase in deficit for financial services from a deficit of $0.2 billion in the three months ended 2023 to $0.4 billion in the three months ended 2024.

Primary Income

The following table sets out the Republic’s primary income for the periods indicated.

	Primary Income
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions)
Total Primary Income		5,276			4,101			3,323			4,949			4,416			1,368
Receipts		13,402			11,594			11,832			13,024			16,362			4,212
Payments		8,125			7,492			8,509			8,076			11,946			2,844
Compensation of employees		8,685			8,413			8,662			8,878			9,070			2,259
Receipts		8,827			8,549			8,825			9,067			9,289			2,295
Payments		142			136			163			189			219			36
Investment income		(3,409	)		(4,311	)		(5,339	)		(3,930	)		(4,654	)		(890	)
Receipts		4,575			3,045			3,007			3,957			7,072			1,917
Payments		7,894			7,356			8,346			7,887			11,727			2,808
Direct investment		(2,740	)		(3,076	)		(4,123	)		(3,136	)		(4,048	)		(570	)
Receipts		2,033			1,218			872			1,280			2,941			772
Payments		4,773			4,293			4,995			4,416			6,989			1,342
Income on equity and investment fund		(3,410	)		(3,476	)		(4,647	)		(2,904	)		(3,765	)		(488	)
Receipts		565			362			234			57			257			40
Payments		3,975			3,838			4,881			2,961			4,022			528
Dividends and withdrawals from income of quasi-corporations		(2,379	)		(2,682	)		(3,530	)		(1,494	)		(2,414	)		(231	)
Receipts		464			212			253			181			368			68
Payments		2,843			2,894			3,784			1,675			2,783			299
Reinvested earnings		(1,031	)		(794	)		(1,117	)		(1,410	)		(1,351	)		(257	)
Receipts		101			150			(20	)		(125	)		(112	)		(28	)
Payments		1,132			944			1,097			1,286			1,239			229

E-21

	Primary Income
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions)
Interest		670			400			524			(232	)		(283	)		(82	)
Receipts		1,468			855			639			1,223			2,684			731
Payments		798			455			115			1,455			2,967			814
Portfolio investment		(2,004	)		(1,962	)		(2,264	)		(2,393	)		(2,096	)		(954	)
Receipts		377			456			693			389			425			104
Payments		2,380			2,417			2,957			2,782			2,521			1,058
Income on equity and investment fund shares		(985	)		(825	)		(846	)		(901	)		(805	)		(497	)
Receipts		1			10			6			1			12			2
Payments		986			835			852			902			817			499
Dividends on equity excluding investment fund shares		(985	)		(825	)		(846	)		(901	)		(805	)		(497	)
Receipts		1			10			6			1			12			2
Payments		986			835			852			902			817			499
Interest		(1,019	)		(1,136	)		(1,418	)		(1,492	)		(1,291	)		(457	)
Receipts		375			446			687			388			413			102
Payments		1,394			1,582			2,105			1,880			1,704			559
Short term		(5	)		(84	)		(385	)		(276	)		(63	)		(2	)
Receipts		8			118			133			12			10			0
Payments		12			202			518			288			73			2
Long term		(1,014	)		(1,052	)		(1,033	)		(1,216	)		(1,228	)		(455	)
Receipts		367			328			555			376			403			102
Payments		1,381			1,380			1,587			1,592			1,631			557
Central Banks		(13	)		(12	)		(12	)		(10	)		(8	)		0
Deposit-taking corporation, except the central bank		(143	)		(143	)		(145	)		(161	)		(129	)		(27	)
General government		(1,100	)		(1,073	)		(1,261	)		(1,196	)		(1,333	)		(504	)
Other sectors		242			176			384			151			242			76
Receipts		367			328			555			376			403			102
Payments		125			152			171			226			160			26
Other investment income		(192	)		(381	)		(258	)		(151	)		(954	)		(41	)
Receipts		639			264			135			538			1,263			367
Payments		831			645			393			689			2,217			408
Central banks		(12	)		(4	)		(1	)		(28	)		(134	)		(39	)
Receipts		0			0			0			0			0			0
Payments		12			4			1			28			134			39
Deposit-taking corporation, except the central bank		275			105			60			367			627			173
Receipts		420			196			115			447			811			225
Payments		145			91			55			80			184			52
General government		(467	)		(374	)		(210	)		(439	)		(1,545	)		(210	)
Other sectors		12			(108	)		(107	)		(51	)		(98	)		34
Receipts		219			69			21			91			452			142
Payments		207			176			127			142			354			108

Source: Bangko Sentral.

Note:

(1) Preliminary data.

(2) Preliminary data for the three months ended March 31, 2024.

E-22

In 2023, according to preliminary data, the primary income account recorded a surplus of $4.4 billion, representing a 10.8% decrease from the surplus of $4.9 billion recorded in 2022. The decreased surplus was primarily the result of a 18.4% decrease in net payment of investment income from $3.9 billion in 2022 to $4.7 billion recorded in 2023.

In the three months ended 2024, according to preliminary data, the primary income account recorded a surplus of $1.4 billion, representing a 101.9% increase from the surplus of $0.7 billion recorded in the three months ended 2023. The increased surplus was primarily the result of a 61.3% increase in direct investment income from a deficit of $1.5 billion in the three months ended 2023 to a deficit $0.6 billion recorded in the three months ended 2024.

Secondary Income

The following table sets out the Republic’s secondary income for the periods indicated.

	Secondary Income
	2019		2020		2021		2022		2023(1)		2024(2)
	($ in millions)
Total Secondary Income		27,949		27,386		29,501		30,596		31,046		7,607
Receipts		28,746		28,240		30,452		31,378		32,138		7,846
Payments		797		854		950		781		1,092		239
General Government		846		631		720		550		518		121
Receipts		883		671		760		590		555		136
Payments		37		39		39		41		37		15
Financial corporations, nonfinancial corporations, households and non-profit institutions serving households		27,103		26,754		28,781		30,047		30,528		7,486
Receipts		27,863		27,569		29,692		30,788		31,583		7,710
Payments		760		815		911		741		1,055		224
Personal transfers		26,256		26,259		27,767		28,873		29,716		7,301
Receipts		26,341		26,334		27,860		28,982		29,807		7,327
Payments		84		75		93		109		91		26
Other current transfers		846		496		1,014		1,174		812		185
Credit		1,523		1,236		1,832		1,806		1,775		383
Debit		676		740		818		632		964		198

Source: Bangko Sentral.

Notes:

(1) Preliminary data.

(2) Preliminary data for the three months ended March 31, 2024.

In the three months ended 2024, according to preliminary data, the secondary income account recorded a surplus of $7.6 billion, 3.1% higher than the $7.4 billion recorded in the three months ended 2023. This increased surplus was due mainly to a 3.1% increase in financial corporations, nonfinancial corporations, households, and non-profit institutions serving households, from $7.3 billion in the three months ended 2023 to $7.5 billion in the three months ended 2024.

E-23

Financial Account

The following table sets out the Republic’s direct investments for the periods indicated.

	Direct Investments
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions)
Total direct investment		(5,320	)		(3,260	)		(9,732	)		(5,631	)		(4,959	)		(2,257	)
Net acquisition of financial assets		3,351			3,562			2,251			3,861			3,905			712
Direct investor in direct investment enterprises		926			125			285			563			866			91
Placements		1,103			248			501			748			986			152
Withdrawals		178			123			216			185			120			60
Reinvestment of earnings		101			150			(20	)		(125	)		(112	)		(28	)
Debt instruments		2,325			3,287			1,986			3,423			3,151			648
Direct investor in direct investment enterprises		418			22			401			101			375			83
Direct investment enterprises in direct investor		1,907			3,265			1,584			3,322			2,776			566
Net incurrence of liabilities		8,671			6,822			11,983			9,492			8,864			2,969
Equity and investment fund shares		3,427			2,651			4,476			3,243			2,530			1,139
Direct investor in direct investment enterprises		2,295			1,706			3,379			1,957			1,291			910
Placements		3,002			2,099			3,934			2,206			1,838			1,129
Withdrawals		706			392			555			249			547			219
Reinvestment of earnings		1,132			944			1,097			1,286			1,239			229
Debt instruments		5,244			4,172			7,507			6,250			6,334			1,830
Direct investor in direct investment enterprises		4,500			3,868			7,333			6,019			6,456			1,819
Direct investment enterprises in direct investor		744			304			174			231			(122	)		11

Source: Bangko Sentral.

Notes:

(1) Preliminary data.

(2) Preliminary data for the three months ended March 31, 2024.

E-24

The following table sets out the Republic’s portfolio investments for the periods indicated.

	Portfolio Investments
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions)
Portfolio investment		(2,474	)		(1,680	)		10,237			(1,684	)		925			(58	)
Net acquisition of financial assets		2,402			6,567			7,809			(281	)		1,507			2,684
Equity and investment fund shares		702			1,014			1,786			(529	)		1,395			201
Central banks		0			0			0			0			0			0
Deposit-taking corporations, except the central bank		81			2			(35	)		(3	)		(40	)		(4	)
Other sectors		622			1,012			1,821			(525	)		1,435			205
Debt securities		1,700			5,553			6,023			247			112			2,483
Central bank		95			1,378			3,414			97			91			18
Deposit-taking corporations, except the central bank		1,983			1,985			(1,414	)		(656	)		(819	)		1,847
Other sectors		(379	)		2,190			4,024			806			839			618
Net incurrence of liabilities		4,876			8,246			(2,428	)		1,402			582			2,742
Equity and investment fund shares		1,764			(2,541	)		(975	)		(488	)		396			1,014
Deposit-taking corporations, except the central bank		(99	)		(739	)		803			645			1,144			1,036
Other sectors		1,863			(1,802	)		(1,778	)		(1,133	)		(748	)		(22	)
Debt securities		3,112			10,787			(1,452	)		1,890			186			1,728
Central bank		(6	)		(24	)		(7	)		(8	)		(14	)		0
Deposit-taking corporations, except the central bank		1,304			424			(1,069	)		156			(1,645	)		1,303
General government		600			6,094			225			2,945			1,932			190
Other sectors		1,214			4,294			(601	)		(1,202	)		(87	)		236

Source: Bangko Sentral.

Notes:

(1) Preliminary data.

(2) Preliminary data for the three months ended March 31, 2024.

From 2019 to March 31, 2024, the Government did not engage in derivative transactions with non-resident counterparties for either hedging or speculative purposes. However, the Bangko Sentral occasionally engages in derivative instrument transactions such as options, forwards and swaps for purposes of managing risk and enhancing yield.

E-25

The following table sets out the Republic’s other investments for the periods indicated.

	Other Investments
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions)
Total other investment		(67	)		(1,767	)		(6,987	)		(6,523	)		(11,266	)		(2,535	)
Net acquisition of financial assets		2,417			3,953			649			(458	)		(1,797	)		(197	)
Currency and deposits		1,019			2,673			(631	)		21			(1,224	)		93
Deposit-taking corporations, except the central bank		787			1,240			184			(629	)		(753	)		(263	)
Other sectors		232			1,433			(815	)		650			(471	)		356
Loans		1,210			1,174			1,165			(520	)		(744	)		(346	)
Deposit-taking corporations, except the central bank		1,210			1,174			1,165			(520	)		(744	)		(346	)
Trade credits and advances(2)		188			118			141			94			92			51
Other accounts receivable		0			(12	)		(26	)		(11	)		79			4
Net incurrence of liabilities		2,484			5,720			7,636			6,108			9,469			2,338
Currency and deposits		169			(333	)		380			479			(141	)		(223	)
Loans		2,111			6,462			4,421			5,242			9,524			1,969
Deposit-taking corporations, except the central bank		267			(3,260	)		(1,166	)		28			2,087			80
Long-term		—			—			—			—			—			—
Short-term		267			(3,260	)		(1,166	)		28			2,087			80
General government		1,463			7,334			4,450			3,757			4,770			1,901
Long-term drawings		2,627			8,517			5,642			4,795			6,066			2,077
Long-term repayments		1,164			1,182			1,192			1,038			1,296			176
Other sectors		382			2,387			1,137			1,457			2,667			(12	)
Long-term		263			1,932			704			1,518			3,022			(75	)
Drawings		2,219			3,507			2,602			3,354			6,692			100
Repayments		1,956			1,576			1,898			1,837			3,670			175
Short-term		118			456			432			(61	)		(355	)		63
Trade credits and advances		117			(787	)		265			510			(70	)		86
Other accounts payable—other		87			378			(202	)		(123	)		155			507

Source: Bangko Sentral.

Notes:

(1) Preliminary data.

(2) All trade credits are short-term credits in non-governmental sectors.

(3) Preliminary data for the three months ended March 31, 2024.

According to preliminary data, the financial account recorded a net outflow of $4.9 billion in the three months ended 2024, less than the net outflow of $5.9 billion in the three months ended 2023. This decrease in net outflow was primarily a result of a 1,348.3% increase in the net inflow of net acquisition of financial assets from an outflow of $0.2 billion in the three months ended 2023 to a net inflow of $3.0 billion in the three months ended 2024. This was partially offset by a 180.3% decrease in direct investment from a net outflow of $0.8 billion in the three months ended 2023 to a net outflow of $2.3 billion in the three months ended 2024.

E-26

Foreign Direct Investment

The following table sets out foreign direct investments in the Philippines by industry.

	Net Foreign Direct Investment by Industry(1)
	2019			2020			2021			2022		2023(2)			2024(3)
	($ in millions)
Industry
Total equity other than reinvestment of earnings, net		2,295.2			1,706.3			3,379.4			1,957.1		1,291.1			1,138.7
Agriculture, forestry and fishing		0.4			0.0			0.4			3.7		5.2			0.9
Mining and quarrying		1.4			0.6			6.0			5.0		7.1			(1.4	)
Manufacturing		303.2			754.0			550.6			737.5		931.8			1,074.4
Electricity, gas, steam and air conditioning supply		307.2			(38.3	)		2,042.3			51.5		(11.4	)		10.2
Water supply, sewerage, waste management and remediation activities		5.8			4.7			(8.5	)		0.0		0.0			0.0
Construction		66.0			99.8			51.5			160.9		69.7			21.8
Wholesale and retail trade and repair of motor vehicles and motorcycles		(180.7	)		93.4			16.2			107.1		101.4			(45.0	)
Transportation and storage		104.8			102.9			72.6			30.5		30.7			4.6
Accommodation and food service activities		20.6			7.8			10.2			16.6		21.1			8.9
Information and communication		357.1			130,0			56.5			177.4		82.7			7.0
Financial and insurance activities		949.7			230.5			362.2			255.9		(65.5	)		(27.5	)
Real estate activities		250.4			187.9			137.1			353.8		89.8			63.6
Professional, scientific and technical activities		8.1			24.4			48.1			33.6		14.0			2.5
Administrative and support service activities		59.5			90.7			15.3			11.5		9.6			6.8
Public administration and defense; compulsory social security		0.0			0.0			0.0			0.0		0.1			0.1
Education		1.5			0.8			7.3			0.9		1.8			1.2
Human health and social work activities		32.2			14.3			8.0			3.4		2.5			0.3
Arts, entertainment and recreation		9.1			2,8			3.3			0.9		0.1			10.2
Other service activities		(1.0	)		0.1			0.3			6.9		0.5			0.2
Others, not elsewhere classified(4)		0.0			0.0			0.0			0.0		0.0			0.0
Reinvestment of earnings		1,132.0			944.2			1,097.1			1,285.5		1,239.3			406.5
Debt instruments		5,244.2			4,171.6			7,506.9			6,249.6		6,333.6			2,478.6
Total		8,671.4			6,822.1			11,983.4			9,492.2		8,864.0			4,023.9

Source: Bangko Sentral.

Notes:

(1) Data restated using the 2009 Philippine Standard Industrial Classification and in accordance with the BPM6 framework. Pursuant to BPM6, net FDI flows refers to non-residents’ net equity capital (calculated as placements less withdrawals plus reinvestment of earnings plus debt instruments (i.e., net intercompany borrowings)).

(2) Preliminary data.

(3) Preliminary data as of May 31, 2024.

(4) Covers non-residents investments in non-banks sourced from the Cross-Border Transactions Survey and in local banks; sectoral or industry breakdown statistics are not available.

E-27

The following table sets out foreign direct investments in the Philippines by country.

	Net Foreign Direct Investment by Country(1)(2)
	2019		2020			2021			2022		2023(3)			2024(4)
	($ in millions)
Country
Total equity other than reinvestment of earnings, net		2,295.2		1,706.3			3,379.4			1,957.1		1,291.1			1,138.7
Asia		1,540.5		1,185.9			3,326.2			1,585.9		1,089.6			352.5
ASEAN(5)		662.2		295.8			2,582.0			673.1		224.6			73.3
Middle East(6)		6.0		8.9			6.3			45.8		(2.9	)		0.9
Other Asia		872.3		881.2			737.9			867		867.9			278.3
Americas		321.1		191.6			157.1			260.0		127.3			42.8
Oceania		0.1		(2.6	)		(8.2	)		6.4		6.3			1.7
Europe		383.5		329.3			(96.8	)		104.3		66.9			740.9
European Union(7)(8)		351.7		278.7			(121.3	)		29.2		64.0			(23.8	)
Other Europe		31.9		50.6			24.5			75.1		2.9			764.7
Africa		49.2		1.1			1.0			0.5		0.7			0.6
Others(9)		0.7		0.9			0.0			0.1		0.2			0.2
International organization		0.0		0.0			0.0			0.0		0.0			0.0
Reinvestment of earnings(10)		1,132.0		944.2			1,097.1			1,285.5		1,239.3			406.5
Debt instruments(10)		5,244.2		4,171.6			7,506.9			6,249.6		6,333.6			2,478.6
Total		8,671.4		6,822.1			11,983.4			9,492.2		8,864.0			4,023.9

Source: Bangko Sentral.

Notes:

(1) Data restated using the 2009 Philippine Standard Industrial Classification and in accordance with the BPM6 framework. Pursuant to BPM6, net FDI flows refers to non-residents’ net equity capital (calculated as placements less withdrawals plus reinvestment of earnings plus debt instruments (i.e., net intercompany borrowings)).

(2) Effective July 17, 2023, the BSP adopted the country list based on the ISO 3166 Country Codes and the country classification based on Continental Grouping (Asia, America, Oceania, Europe, and Africa). For comparability across periods, the data for 2019-2024 were revised to reflect the updated totals by continental group.

(3) Preliminary data.

(4) Preliminary data as of May 31, 2024.

(5) Includes Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand and Viet Nam.

(6) Includes Bahrain, Egypt, the Islamic Republic of Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Libya, Oman, Palestinian Territory, Qatar, Saudi Arabia, the Syrian Arab Republic (Syria), United Arab Emirates and Yemen.

(7) Includes Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

(8) The United Kingdom left the European Union effective January 1, 2021. For comparability across periods, data prior to January 2021 were revised to reflect the UK’s exit from EU.

(9) Other countries not specified.

(10) Country breakdowns statistics are not available.

E-28

In 2023, according to preliminary data, net inflows of foreign direct investment were $8.9 billion, 6.6% lower than the $9.5 billion recorded in 2022. The lower inflows were mainly due to a decrease in inflows for net equity other than reinvestment of earnings, which decreased from $2.0 billion in 2022 to $1.3 billion in 2023, and in the financial and insurance activities industry, from an inflow of $255.9 million for 2022 to an outflow of $65.5 million for 2023. This decrease was similarly observed for the construction industry, which had a decreased net inflow from $160.9 million for 2022, to $69.7 million for 2023, as well as for real estate activities, which inflows decreased from $353.8 million for 2022, to $89.8 million for 2023. However, these were slightly offset by an increase in net inflows for manufacturing activities, which increased from $737.5 million in 2022 to $931.8 million in 2023.

In the first five months of 2024, according to preliminary data, net inflows of foreign direct investment were $4.0 billion, 14.3% higher than the $3.5 billion recorded in the first five months of 2023. The higher inflows were mainly due to an increase in net equity other than reinvestment of earnings, which increased from $0.6 billion in the first five months of 2023 to $1.1 billion in the first five months of 2024. However, these were partially offset by a reversal in net inflows for wholesale and retail trade, repair of motor vehicles and motorcycle activities, from an inflow of $37.9 million in the first five months of 2023 to an outflow of $45.0 million in the first five months of 2024.

In the first five months of 2024, according to preliminary data, the contribution of new equity investments to net inflows of foreign direct investment increased to $1.1 billion in the first five months of 2024 from $627.7 million in the first five months of 2023. Foreign direct investment increased primarily as a result of an increase in new equity investments of foreign direct investment from Europe to a net inflow of $740.9 million in the first five months of 2024 from a net inflow of $150.14 million in the first five months of 2023. These were partially offset by a decrease in net inflow from the Americas, from a net inflow of $62.5 million in the first five months of 2023 to a net inflow of $42.8 million in the first five months of 2024. Reinvestment of earnings in the Republic decreased to $406.5 million in the first five months of 2024, compared with $410.7 million in the first five months of 2023.

International Reserves

The following table sets out the gross international reserves of the Bangko Sentral, compiled in a manner consistent with the revised balance of payments framework and the treatment of IMF accounts in the depository corporations survey published in the IMF’s International Financial Statistics.

	Gross International Reserves of Bangko Sentral
	As of December 31,
	2019		2020		2021		2022		2023		2024(1)
	($ in millions, except months and percentages)
Sector
Reserve position in the IMF(2)		590.4		813.1		801.6		789.8		760.9		719.9
Gold		8,015.9		11,650.3		9,332.8		9,282.3		10,557.2		10,312.2
Special Drawing Rights (“SDR”)		1,181.9		1,232.9		3,938.9		3,764.8		3,809.6		3,750.4
Foreign investments		75,303.8		93,644.5		91,624.5		81,369.5		87,854.8		90,074.0
Foreign exchange(3)		2,747.5		2,821.6		3,096.6		942.8		770.7		791.2
Total		87,839.5		110,117.4		108,794.4		96,149.2		103,753.2		105,647.7
Total as number of months of imports of goods and services Total as a % of short-term debt(4)		7.6		12.3		9.7		7.2		7.7		7.8
Original maturity		510.5		775.0		721.0		578.5		606.9		607.5
Residual maturity		396.5		520.2		545.8		384.3		384.7		380.8

Source: Bangko Sentral.

E-29

Notes:

(1) Preliminary data as of July 31, 2024.

(2) The reserve position in the IMF refers to the country’s claim on the IMF’s General Resources Account. It is an asset of the Government but is treated as part of the gross international reserves.

(3) Consists of time deposits, investments in securities issued or guaranteed by Government or international organizations and repurchase agreements.

(4) Short-term debt based on residual maturity refers to outstanding short-term external debt on original maturity plus principal payments on medium-and long-term loans of the public and private sectors due within the next 12 months.

Preliminary data indicates that gross international reserves were $105.6 billion as of July 31, 2024, an increase from the $99.9 billion recorded as of July 31, 2023. This increase was mainly due to an increase of $6.4 billion in foreign investments to $90.1 billion as of July 31, 2024 from $83.7 billion as of July 31, 2023. The level of gross international reserves as of July 31, 2024 was sufficient to cover approximately 7.8 months of imports of goods and payments of services and income, and was equivalent to 6.1 times the Republic’s short-term debt based on original maturity and 3.8 times based on residual maturity. Net international reserves at the end of July 2024 were $105.6 billion.

Monetary System

Money Supply

The following table presents certain information regarding the Philippines’ money supply.

	Money Supply (SRF-based)
	As of December 31,
	2019			2020			2021			2022			2023			2024(1)
	(₱ in billions, except percentages)
M1(2)
Currency in circulation		1,395.8			1,731.8			1,876.8			2,020.0			2,115.9			2,060.0
Current account deposits		3,104.5			3,724.1			4,323.3			4,603.3			4,750.0			4,842.8
Total		4,500.3			5,455.9			6,200.1			6,623.3			6,865.9			6,902.8
percentage increase(3)		15.7	%		21.2	%		13.6	%		6.8	%		3.7	%(6)		6.9	%(6)
M2(4)		12,293.2			13,564.2			14,769.5			15,918.1			16,948.8			17,107.3
percentage increase(3)		10.9	%		10.3	%		8.9	%		7.8	%		6.5	% (6)		7.1	%(6)
M3(4)		12,976.3			14,222.0			15,343.4			16,405.9			17,441.3			17,498.6
percentage increase(3)		11.5	%		9.6	%		7.9	%		6.9	%		6.3	% (6)		6.6	%(6)

Sources: Department of Economic Statistics; Bangko Sentral.

Notes:

(1) Preliminary data as of June 30, 2024.

(2) Consists of currency in circulation and demand deposits.

(3) Period-on-period.

(4) Consists of M1, savings deposits and time deposits.

(5) Consists of M2 and deposit substitutes.

(6) Year-on-year changes.

E-30

As of December 31, 2023, according to preliminary data, the Republic’s money supply (M3) was ₱17.4 trillion, an increase of 6.3% from the ₱16.4 trillion as of December 31, 2022. This growth in money supply was mainly driven by the increase in domestic claims, which increased by 9.3% compared to the level as of December 31, 2022. This increase was primarily driven by an increase in net claims on Central Government, which increased by 14.1% compared to the level as of December 31, 2022. The net foreign asset position increased by 4.6% to ₱6.5 trillion as of December 31, 2023 and the net foreign asset position of other depository corporations decreased by 12.1% to ₱775.1 billion as of December 31, 2023.

As of June 30, 2024, according to preliminary data, the Republic’s money supply (M3) was ₱17.5 trillion, an increase of 6.6% from ₱16.4 trillion as of June 30, 2023. This growth in money supply was mainly driven by the increase in domestic claims, which increased by 10.5% compared to the level as of June 30, 2023. This increase was primarily driven by an increase in net claims on Central Government, which increased by 12.1% compared to the level as of June 30, 2023. The net foreign asset position increased by 8.3% to ₱6.9 trillion as of June 30, 2024 and the net foreign asset position of other depository corporations decreased by 18.6% to ₱669.2 billion as of June 30, 2024.

As of July 31, 2024, the average 91-day T-bill rate was 5.7%.

The following table presents information regarding domestic interest and deposit rates.

Domestic Interest and Deposit Rates

	Domestic Interest and Deposit Rates
	2019		2020			2021			2022			2023			2024
	(weighted averages per period) (%)
91-day Treasury bill rates		4.7		2.0			1.1			1.9			5.4			5.7	(1)
Bank average lending rates		7.1		7.0	(2)		6.1	(2)		6.0	(2)		7.6	(2)		7.8	(3)

Source: Bangko Sentral.

Notes:

(1) Preliminary data as of July 31, 2024.

(2) Preliminary data.

(3) Preliminary data as of June 30, 2024.

Monetary Regulation

On February 15, 2024, April 8, 2024, May 16, 2024 and June 27, 2024, the Monetary Board decided to maintain the interest rate on the Bangko Sentral’s overnight reverse repurchase facility at 6.50%. Accordingly, the interest rates on the overnight deposit and lending facilities were maintained at 6.0% and 7.0%, respectively. On August 15, 2024, the Monetary Board decided to reduce the Bangko Sentral’s overnight reverse repurchase facility by 25 basis points to 6.25%. Accordingly, the interest rates on the overnight deposit and lending facilities were accordingly adjusted to 5.75% and 6.75%, respectively.

E-31

Foreign Exchange System

The following table sets out exchange rate information between the peso and the U.S. dollar.

	Exchange Rates of Peso per U.S. Dollar
Year	Period End		Period Average(1)
2019		50.744		51.796
2020		48.036		49.624
2021		50.774		49.255
2022		56.120		54.478
2023		55.567		55.630
2024(2)		58.484		57.111

Sources: Reference Exchange Rate Bulletin: Treasury Department: Bangko Sentral.

Notes:

(1) The average of the monthly average exchange rates for each month of the applicable period.

(2) Preliminary data for the seven months ended July 31, 2024.

In the seven months ended July 31, 2024, the average exchange rate was ₱57.111 per U.S. dollar, compared to ₱55.214 per U.S. dollar in the seven months ended July 31, 2023. The depreciation of the peso against the U.S. dollar in the seven months ended July 31, 2024 was primarily attributable to the broad strengthening of the U.S. dollar amid expected delays in the policy easing cycle of the U.S. Federal Reserve in light of continued high inflation and labor market tightness.

The Philippine Financial System

Composition

The following table sets out the total resources of the Philippine financial system by category of financial institution.

	Total Resources of the Financial System(1)
	As of December 31,
	2019		2020		2021		2022		2023(2)		2024(3)
	(₱ in billions)
Banks
Universal/Commercial banks		17,216		18,527		19,761		22,376		24,316		25,315
Thrift banks		1,204		1,192		1,338		1,028		1,104		1,125
Digital banks		—		—		—		—		91		111
Rural banks		291		308		341		403		446		458
Total banks		18,712		20,028		21,440		23,807		25,957		27,009
Non-bank financial institutions(4)		4,446		4,674		4,917		5,057		5,230		5,323
Total assets		23,158		24,702		26,357		28,864		31,187		32,332

Sources: Department of Economic Statistics; Bangko Sentral.

Notes:

(1) Excludes assets of the Bangko Sentral. The amounts presented here include allowance for probable losses.

(2) Preliminary data.

(3) Preliminary data as of June 30, 2024, unless otherwise indicated.

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(4) Includes Investment Houses, Finance Companies, Investment Companies, Securities Dealers/Brokers, Pawnshops, Lending Investors, Non Stocks Savings and Loan Associations, Credit Card Companies (which are under Bangko Sentral supervision), Government Non-bank Financial Institutions, Authorized Agent Banks Forex Corporations, and Private and Government Insurance Companies (i.e., SSS and GSIS).

Structure of the Financial System

Expanded commercial banks, otherwise known as universal banks, in addition to regular commercial banking activities, may also engage in investment banking activities, invest in non-allied enterprises and own up to 100% of the equity in a thrift bank, a rural bank, a financial allied enterprise or a non-financial allied enterprise. In the case of a publicly listed universal bank, it may also own up to 100% of the voting stock of only one other universal bank or commercial bank. As of June 30, 2024, according to preliminary data, the Republic had 44 operating universal and commercial banks.

The following table sets out the outstanding loans of universal and commercial banks classified by sector and their percentages by sector are net of Bangko Sentral’s Reverse Repurchase Agreements.

	Universal and Commercial Banks’ Outstanding; Loans by Sector (1)
	As of December 31,
	2019				2020				2021				2022				2023				2024(2)
	(₱ in billions, except percentages)
Total		9,508.8	100	%		9,442.2	100	%		9,892.2	100	%		11,206.2	100	%		12,283.6	100	%		12,606.2	100	%
Agriculture, Forestry and Fishing		221.9	2.3	%		211.4	2.2	%		200.6	2.0	%		207.1	1.9	%		214.8	1.7	%		215.5	1.7	%
Mining and Quarrying		48.0	0.5	%		43.5	0.5	%		37.3	0.4	%		39.3	0.4	%		44.9	0.4	%		54.2	0.4	%
Manufacturing		1,048.7	11.0	%		933.2	9.9	%		1,088.8	11.0	%		1,260.4	11.5	%		1,271.6	10.4	%		1,267.0	10.1	%
Electricity, Gas, Steam and Air conditioning Supply		1,006.4	10.6	%		1,044.0	11.1	%		1,046.4	10.6	%		1,197.7	11.0	%		1,273.4	10.4	%		1,295.8	10.3	%
Water Supply, Sewerage, Waste Management and Remediation Activities		106.0	1.1	%		103.7	1.1	%		109.7	1.1	%		135.8	1.2	%		177.1	1.4	%		193.3	1.5	%
Construction		368.7	3.9	%		375.6	4.0	%		383.5	3.9	%		448.0	4.1	%		492.4	4.0	%		481.7	3.8	%
Wholesale and Retail Trade and Repair of Motor Vehicles and Motorcycles		1,193.9	12.6	%		1,112.6	11.8	%		1,125.8	11.4	%		1,269.7	11.6	%		1,371.4	11.2	%		1,386.2	11.0	%
Accommodation and Food Service Activities		153.7	1.6	%		162.4	1.7	%		150.7	1.5	%		149.8	1.4	%		151.7	1.2	%		151.8	1.2	%
Transportation and Storage		287.9	3.0	%		302.2	3.2	%		330.0	3.3	%		347.4	3.2	%		381.9	3.1	%		460.2	3.7	%
Information and Communication		357.3	3.8	%		376.1	4.0	%		482.0	4.9	%		589.0	5.4	%		630.9	5.1	%		648.3	5.1	%
Financial and Insurance Activities		923.8	9.7	%		881.0	9.3	%		970.6	9.8	%		1,039.0	9.5	%		987.2	8.0	%		981.5	7.8	%
Real Estate Activities		1,677.8	17.6	%		1,768.1	18.7	%		1,930.9	19.5	%		2,187.9	20.0	%		2,428.3	19.8	%		2,482.9	19.7	%
Professional, Scientific and Technical Activities		68.1	0.7	%		54.6	0.6	%		57.8	0.6	%		42.4	0.4	%		37.7	0.3	%		44.8	0.4	%
Administrative and Support Service Activities		41.6	0.4	%		37.6	0.4	%		31.1	0.3	%		39.9	0.4	%		43.9	0.4	%		46.7	0.4	%
Public Administration and Defense; Compulsory Social Security		142.4	1.5	%		144.6	1.5	%		152.6	1.5	%		170.3	1.6	%		192.7	1.6	%		200.6	1.6	%
Education		42.9	0.5	%		39.9	0.4	%		34.8	0.4	%		33.9	0.3	%		31.0	0.3	%		30.3	0.2	%
Human Health and Social Work Activities		59.9	0.6	%		89.3	0.9	%		93.2	0.9	%		96.7	0.9	%		101.8	0.8	%		99.6	0.8	%
Arts, Entertainment and Recreation		146.8	1.5	%		150.1	1.6	%		162.4	1.6	%		174.2	1.6	%		173.3	1.4	%		189.5	1.5	%
Other Service Activities		100.2	1.1	%		65.0	0.7	%		67.8	0.7	%		84.3	0.8	%		95.1	0.8	%		102.3	0.8	%

E-33

	Universal and Commercial Banks’ Outstanding; Loans by Sector (1)
	As of December 31,
	2019				2020				2021				2022				2023				2024(2)
	(₱ in billions, except percentages)
Activities of Households as Employers, Undifferentiated Goods & Services Producing Activities of Households for Own Use		79.8	0.8	%		86.3	0.9	%		67.3	0.7	%		69.2	0.6	%		18.4	0.1	%		14.3	0.1	%
Others(3)		1,433.0	15.1	%		1,400.8	14.8	%		1,368.8	13.8	%		1,624.4	12.2	%		2,164.4	17.6	%		2,259.8	17.9	%

Source: Bangko Sentral.

Notes:

(1) Net of amortization.

(2) Preliminary data as of June 30, 2024.

(3) Includes loans to individuals for household consumption purposes, loans under the Bangko Sentral’s reverse repurchase arrangement and loans to non-residents.

Rural and cooperative banks extend credit in the rural areas on reasonable terms to meet the normal credit needs of farmers, fishermen, cooperatives and merchants and, in general, the people in the rural communities. As of July 31, 2024, according to preliminary data, the Republic had 385 operating rural and cooperative banks.

As of July 31, 2024, according to preliminary data, the Republic had 42 operating thrift banks (including microfinance-oriented banks).

As of June 30, 2024, there were five microfinance rural banks with 154 branches. Meanwhile, as of January 31, 2024, there were 16 microfinance-oriented branches of thrift banks and two microfinance-oriented branches of rural banks. Microfinance-oriented banks are required at all times to hold at least 50% of their gross loan portfolio in microfinance loans. Micro finance loans are loans with principal amounts of up to ₱150,000. The loan ceiling can be further increased to ₱300,000 in the case of loans to growing microenterprises, or “Microfinance Plus,” and housing microfinance loans.

On August 8, 2024, the Monetary Board lifted the moratorium on the grant of new digital banking licenses starting January 1, 2025 and allowed a maximum of ten digital banks to operate in the Philippines.

Non-bank financial institutions are primarily long-term financing institutions, though they also facilitate short-term placements in other financial institutions. As of June 30, 2024, according to preliminary data, the Bangko Sentral regulated or supervised five non-bank financial institutions with quasi-banking functions. The Bangko Sentral also supervised or regulated 1,526 non-bank financial institutions without quasi-banking functions, according to preliminary data as of June 30, 2024.

Financial Sector Reforms

On July 20, 2024, the Anti-Financial Account Scamming Act (“AFASA”) was passed into law. The law aims to combat financial cybercrimes, safeguard the interests of financial consumers, and uphold the integrity of the financial system. AFASA authorizes the Bangko Sentral to investigate cases involving violations of the law, apply for cybercrime warrants and orders, and request the assistance of the National Bureau of Investigation and the Philippine National Police in the investigation of cases. It includes limited authority for Bangko Sentral to examine and investigate bank accounts, e-wallets, and other financial accounts involved in the prohibited acts. Responsible institutions are also given the authority to hold disputed funds in financial accounts under certain conditions; as well as initiate a coordinated verification process to validate the disputed transactions.

E-34

Non-Performing Loans

The following table provides information regarding NPLs for universal and commercial banks for the periods indicated.

	Total Loans (Gross) and Non-Performing Loans by type of Bank(1)
	As of December 31, (unless otherwise stated)
	2019			2020			2021			2022			2023			2024(2)
	(₱ in billions, except percentages)
Private Domestic Universal banks
Total loans		7,682.5			7,711.6			8,061.1			9,260.2			9,983.6			10,359.8
Non-performing loans		111.9			244.6			290.8			233.5			251.3			273.3
Ratio of non-performing loans to total loans		1.5	%		3.2	%		3.6	%		2.5	%		2.5	%		2.6	%
Other Private Commercial banks
Total loans		360.2			361.0			387.0			238.7			265.3			145.7
Non-performing loans		11.0			17.6			19.7			13.2			14.9			11.6
Ratio of non-performing loans to total loans		3.1	%		4.9	%		5.1	%		5.5	%		5.6	%		8.0	%
Government banks(3)
Total loans		1,305.9			1,321.3			1,434.5			1,748.8			2,033.6			2,095.8
Non-performing loans		28.6			36.3			55.1			86.7			106.9			134.4
Ratio of non-performing loans to total loans		2.2	%		2.8	%		3.9	%		5.0	%		5.3	%		6.4	%
Foreign banks(3)
Total loans		605.4			525.5			574.5			554.9			568.9			648.3
Non-performing loans		5.0			10.2			6.1			3.1			6.6			5.8
Ratio of non-performing loans to total loans		0.8	%		2.0	%		1.1	%		0.6	%		1.2	%		0.9	%
Total loans		9,954.0			9,919.5			10,457.1			11,802.5			12,851.5			13,249.7
Total non-performing loans		156.5			308.8			371.6			336.5			379.8			425.0
Ratio of non-performing loans to total loans		1.6	%		3.1	%		3.6	%		2.9	%		3.0	%		3.2	%

Source: Bangko Sentral.

Notes:

(1) Include transactions of local banks’ foreign offices but exclude banks under liquidation.

(2) Preliminary data as of June 30, 2024.

(3) Consists of LBP, DBP and Al-Amanah Islamic Investment Bank of the Philippines.

As of June 30, 2024, according to preliminary data, the gross non-performing loan ratio was 3.2%, which was higher than the ratio of 3.1% recorded as of June 30, 2023. Non-performing loans increased by 14.6% to ₱425.0 billion as of June 30, 2024 from the ₱370.9 billion recorded as of June 30, 2023, primarily due to inflation and rising interest rates which weighed down borrowers’ capacity to pay. The U/KB industry’s total loan portfolio increased by 11.9% to ₱13,249.7 billion as of June 30, 2024 from the ₱11,843.8 billion recorded as of June 30, 2023.

The Philippine Securities Markets

History and Development

As of March 31, 2024, the Philippine Stock Exchange had 282 listed companies and 122 active trading participants.

The PSEi closed at 6,973.41 points on August 27, 2024.

E-35

Government Securities Market

As of June 30, 2024, outstanding Government securities amounted to ₱10.6 trillion, 57.3% of which were issuances of treasury bills and fixed rate treasury bonds. The remaining issuances of Government securities consisted of retail treasury bonds, benchmark bonds and onshore dollar bonds, among others.

Public Finance

The Consolidated Financial Position

The following table sets out the consolidated financial position on a cash basis for the periods indicated.

	Consolidated Public Sector Financial Position of the Republic As of December 31,
	2019			2020			2021			2022			2023(1)
	(₱ in billions, except percentages)
Public sector borrowing requirement:
National Government		(660.2	)		(1,371.5	)		(1,670.1	)		(1,614.1	)		(1,512.1	)
CB Restructuring		(0.0	)		(0.0	)		0.0			0.0			0.0
Monitored Government-owned corporations		(0.7	)		(1.5	)		28.7			31.9			64.07
Adjustment of net lending and equity to GOCCs		20.5			22.1			22.1			25.6			27.8
Other adjustments		0.0			0.0			0.0			0.0			0.0
Total public sector borrowing requirement		(640.4	)		(1,350.8	)		(1,619.3	)		(1,556.6	)		(1,420.2	)
As a percentage of GDP Other public sector:		(3.3	)%		(7.5	)%		(8.3	)%		(7.1	)%		(5.8	)%
Social Security System and Government Service Insurance System		53.9			84.1			190.6			226.0			273.1
Bangko Sentral(2)		44.0			(7.9	)		19.7			47.2			(5.39	)
Government financial institutions		26.1			25.9			30.0			45.1			49.9
Local government units		259.0			272.3			284.6			433.3			325.0
Timing adjustment of interest payments to the Bangko Sentral		0.0			0.0			0.0			0.0			0.0
Other adjustments		0.0			0.0			0.0			0.0			0.0
Total other public sector		383.0			374.4			524.8			751.7			642.7
Consolidated public sector financial position		(257.5	)		(976.4	)		(1,094.4	)		(804.9	)		(777.5	)
As a percentage of GDP		(1.3	)%		(5.4	)%		(5.6	)%		(3.7	)%		(3.2	)%

Sources: Fiscal Policy and Planning Office; Department of Finance.

Notes:

(1) Preliminary data as of December 31, 2023.

(2) Amounts are net of interest rebates, dividends and other amounts remitted to the Government and the Central Bank-Board of Liquidation.

In 2023, the consolidated public sector financial position of the Republic recorded a deficit of ₱777.5 billion, a decrease from the ₱804.9 billion deficit recorded in 2022. The decrease in the public sector deficit was largely due to an increase in inflows from the Social Security System and Government Service Insurance System and a decrease in the National Government’s borrowing requirements, which borrowing requirement decreased from ₱1,614.1 billion in 2022 to ₱1,512.1 billion in 2023, respectively. The deficit in 2023 was equivalent to 3.2% of the Republic’s GDP in 2023 at current prices.

E-36

Government Revenues and Expenditures

The following table sets out Government revenues and expenditures for the periods indicated.

	Government Revenues and Expenditures(1)
	Actual																		Budget
	2019			2020			2021			2022			2023			2024(2)			2022			2023
	(₱ in billions, except percentages)
Cash Revenues
Tax revenues:
Bureau of Internal Revenue		2,175.5			1,951.0			2,078.1			2,335.7			2,517.0			1,681.8			2,392.6			2,639.2
Bureau of Customs		630.3			537.7			643.6			862.4			883.2			535.9			721.5			874.2
Others Government offices(3)		21.8			15.7			21.0			22.2			29.1			20.4			25.4			24.6
Total tax revenues		2,827.7			2,504.4			2,742.7			3,220.3			3,429.3			2,238.1			3,139.6			3,537.9
As a percentage of GDP (at current market prices)		14.5	%		14.0	%		14.1	%		14.6	%		14.1	%		N/A			14.3	%		20.6	%
Non-tax revenues:
Bureau of the Treasury income		146.5			219.7			125.3			154.8			227.6			183.8			63.4			58.3
Fees and charges		55.4			23.1			31.7			101.0			68.5			22.8			41.7			28.0
Privatizations		0.9			0.5			0.3			1.6			0.9			0.4			0.5			0.5
Others (including Foreign grants)		107.0			108.3			105.5			67.8			97.8			155.8			58.9			104.2
Total non-tax revenues		309.6			351.3			262.5			324.1			394.2			368.5			164.5			191.1
Total revenues		3,137.5			2,856.0			3,005.5			3,545.5			3,824.1			2,606.9			3,304.1			3,729.0
Expenditures
Allotment to local government units		618.0			804.5			892.7			1,103.3			926.1			590.4			825.9			610.7
Interest payments
Foreign		110.6			101.4			96.1			119.4			192.6			133.3			110.3			152.4
Domestic		250.3			279.1			333.3			383.5			435.7			323.4			402.3			458.2
Total interest payments		360.9			380.4			429.4			502.9			628.3			456.7			512.6			610.7
Tax expenditures		27.3			33.1			36.7			39.8			31.7			24.7			14.5			14.5
Subsidy		201.5			229.0			184.8			200.4			163.5			77.9			172.3			214.5
Equity and net lending		20.4			34.9			65.4			38.4			27.3			0.4			40.9			31.1
Others		2,569.6			2,745.4			3,066.6			3,275.0			3,559.3			2,099.5			3,388.4			3,412.9
Total expenditures		3,797.7			4,227.4			4,675.6			5,159.6			5,336.2			3,249.7			4,954.6			5,228.4
Surplus/(Deficit)		(660.2	)		(1,371.4	)		(1,670.1	)		(1,614.1	)		(1,512.1	)		(642.8	)		(1,650.5	)		(1,499.4	)
Financing
Net domestic borrowings		691.4			1,894.3			1,920.7			1,576.8			1,632.9			1,239.5			1,646.9			1,651.5
Gross domestic borrowings		693.8			1,998.7			2,010.6			1,643.4			1,634.2			1,483.7			1,650.3			1,653.5
Less: Amortization		2.4			104.4			89.9			66.6			1.3			244.2			3.4			2.0
Net foreign borrowings		184.8			600.8			331.5			389.6			437.9			125.8			428.3			431.0
Total net financing requirement		876.3			2,495.1			2,252.2			1,966.4			2,070.9			1,365.3			2,075.2			2,082.5
Change in cash		(224.6	)		701.7			66.1			(119.1	)		(164.6	)		578.3

Sources: Bureau of the Treasury; Department of Finance; Department of Budget and Management.

E-37

Notes:

(1) Follows the GFSM 2014 concept wherein reporting of debt amortization reflects the actual principal repayments to the creditor including those serviced by the Bond Sinking Fund. Financing includes gross proceeds of liability management transactions such as bond exchanges.

(2) Preliminary data as of July 31, 2024.

(3) Represents tax revenues of the Department of Environment and Natural Resources, Bureau of Immigration and Deportation, Land Transportation Office and other Government entities.

Revenues

Sources

Total Government revenues in the first seven months of 2024 were ₱2,606.9 billion, a 14.7% increase over the ₱2,271.9 billion recorded in the first seven months of 2023. In the first seven months of 2024, Bureau of Internal Revenue collections were ₱1,681.8 billion, a 12.7% increase from the ₱1,492.3 billion recorded in the first seven months of 2023. The Bureau of Customs recorded collections of ₱535.9 billion in the first seven months of 2024, a 5.8% increase from the ₱506.5 billion recorded in the first seven months of 2023. Non-tax revenues were ₱368.5 billion in the first seven months of 2024, a 44.5% increase from the ₱255.0 billion recorded in the first seven months of 2023.

Expenditures

Total Government expenditures in the first seven months of 2024 were ₱3,249.7 billion, a 13.2% increase over the ₱2,871.4 billion recorded in the first seven months of 2023. This increase was primarily due to higher interest payments and other national Government expenditures.

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Debt

External Debt

The following table sets out the total outstanding Bangko Sentral-approved and registered external debt.

	Bangko Sentral Approved External Debt As of December 31,
	2019			2020			2021			2022			2023(1)			2024(2)
	($ in millions, except percentages)
By Maturity:
Short-term(3)		17,208			14,209			15,090			16,619			17,096			17,098
Medium and long-term		66,410			84,279			91,339			94,649			108,298			111,594
Total		83,618			98,488			106,428			111,268			125,394			128,692
By Debtor(4)
Banking system		23,943			21,559			23,539			23,673			24,239			25,792
Public sector(5)		59,675			76,929			82,889			87,596			101,154			102,900
Total		83,618			98,488			106,428			111,268			125,394			128,692
By Creditor Type:
Banks and financial institutions		26,478			24,006			23,695			25,446			28,664			28,491
Suppliers		4,187			3,136			3,687			3,994			4,328			4,446
Multilateral		14,428			21,407			27,125			29,375			33,105			34,808
Bilateral		10,963			12,752			12,508			12,835			15,196			15,881
Bond holders/note holders		25,449			35,028			36,940			36,817			40,946			42,241
Others		2,112			2,160			2,474			2,802			3,154			2,825
Total		83,618			98.488			106,428			111,268			125,394			128,692
Ratios:
Debt service burden to exports of goods, and services & primary income		6.7	%		6.7	%		7.5	%		6.3	%		10.2	%		9.2	%(7)
Debt service burden to GNI(6)		2.1	%		1.9	%		2.2	%		2.0	%		3.0	%		2.7	%(7)
External debt to GNI(6)		20.2	%		25.3	%		26.1	%		26.0	%		25.8	%		25.9	%(7)

Source: Bangko Sentral.

Notes:

(1) Preliminary data as of December 31, 2023.

(2) Preliminary data as of March 31, 2024.

(3) Debt with original maturity of one year or less.

(4) Classification by debtor is based on the primary obligor under the relevant loan or rescheduling documentation.

(5) Includes public sector debt whether or not guaranteed by the Government; does not include public banks.

(6) For comparability with annual figures, GNI and GDP were annualized by taking the sum over the past four quarters of the GNI and GDP, respectively.

(7) Preliminary data as of May 31, 2024.

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Government Financing Initiatives

The following are the major program loans approved by creditor agencies or availed of by the Government from 2019 to March 2024.

Program Loan	Creditor	Amount			Date Signed
		($) unless otherwise specified
Improving Fiscal Management Development Policy Loan	WB		450 million			March 2019
Social Welfare Development and Reform Project II (Additional Financing)	WB		300 million			June 2019
Local Governance Reform Program (Subprogram 1)	ADB		300 million			December 2019
Facilitating Youth School-to-Work Transition Program (Subprogram 2)	ADB		400 million			December 2019
Promoting Competitiveness and Enhancing Resilience to Natural Disasters Subprogram 1 DPL	WB		400 million			December 2019
COVID-19 Active Response and Expenditure Support Program	ADB		1,500 million			April 2020
Social Protection Support Project	ADB		200 million			April 2020
Third Disaster Risk Management Development Policy Loan	WB		500 million			April 2020
Support to Capital Market Generated Infrastructure Financing, Subprogram 1	ADB		400 million			June 2020
Expanded Social Assistance Program	ADB		500 million			June 2020
COVID-19 Active Response and Expenditure Support Program	AIIB		750 million			June 2020
Expanding Private Participation in Infrastructure Program, Subprogram 2	Agence Française de Développement		EUR 150 million			June 2020
Inclusive Finance Development Program, Subprogram 2	Agence Française de Développement		EUR 100 million			June 2020
Emergency COVID-19 Response Development Policy Loan	WB		500 million			June 2020
COVID-19 Crisis Response Emergency Support Loan	JICA		YEN 50 billion			July 2020
Competitive and Inclusive Agriculture Development Program, Subprogram 1	ADB		400 million			August 2020
Inclusive Finance Development Program, Subprogram 2	ADB		300 million			August 2020
Disaster Resilience Improvement Program	ADB		500 million			September 2020
Post Disaster Standby Loan Phase 2 (PDSL 2)	JICA		YEN 50 billion			September 2020
Program Loan for COVID-19 Emergency Response Program	KEXIM-EDCF		100 million			October 2020
Philippines Beneficiary FIRST Social Protection Project - Component 1	WB		580 million	*		November 2020
Promoting Competitiveness and Enhancing
Resilience to Natural Disasters Subprogram 2 Development Policy Loan	WB		600 million			December 2020
Facilitating Youth School-to-Work Transition Program, Subprogram 3	ADB		400 million			December 2020

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Program Loan	Creditor	Amount		Date Signed
		($) unless otherwise specified
Philippines First Financial Sector Reform Development Policy Loan	WB		400 million		July 2021
Facilitating Youth School to Work Program, Subprogram 3	ADB		400 million		August 2021
Local Governance Reform Program, Subprogram 2	ADB		400 million		November 2021
Philippines Fourth Disaster Risk Management Development Policy Loan with a Catastrophe- Deferred Drawdown Option	WB		500 million		November 2021
Disaster Risk Reduction Enhancement At Local Level Program	Agence Française de Développement		EUR 250 million		December 2021
Build Universal Health Care Program, Subprogram 1	ADB		600 million		December 2021
Promoting Competitiveness and Enhancing Resilience to Natural Disasters Subprogram 3 Development Policy Loan	WB		600 million		December 2021
Program Loan for COVID-19 Emergency Response Program II - Vaccination Program	KEXIM-EDCF		100 million		December 2021
COVID-19 Crisis Response Emergency Support Loan (Phase 2)	JICA		YEN 30 billion		April 2022
Climate Change Action Program, Subprogram 1	ADB		250 million		June 2022
Support to Capital Market Generated Infrastructure Financing, Subprogram 2	ADB		400 million		June 2022
Climate Change Action Program, Subprogram 1	Agence Française de Développement		EUR 150 million		December 2022
Competitive and Inclusive Agriculture Development Program, Subprogram 2	ADB		500 million		February 2023
Post-COVID-19 Business and Employment Recovery Program, Subprogram 1	ADB		500 million		February 2023
Philippines Second Financial Sector Reform Development Policy Loan	WB		600 million		February 2023
Post-COVID-19 Business and Employment Recovery Program, Subprogram 1	AIIB		500 million		May 2023
Philippines First Sustainable Recovery Development Policy Loan	WB-IBRD		750 million		June 2023
Post Disaster Stand-by Loan Phase 3 (PDSL 3)	\JICA		YEN 30 billion		August 2023
Inclusive Finance Development Program, Subprogram 3	ADB		300 million		November 2023
Philippines First Digital Transformation Development Policy Loan	WB-IBRD		600 million		November 2023
Domestic Resource Mobilization Program, Subprogram 1	ADB		400 million		December 2023
Build Universal Health Care Program, Subprogram 2	ADB		EUR equivalent of 450 million		December 2023
Inclusive Finance Development Program, Subprogram 3	AIIB		300 million		December 2023

E-41

Program Loan	Creditor	Amount		Date Signed
		($) unless otherwise specified
Domestic Resource Mobilization, Subprogram 1	AIIB		400 million		December 2023
Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe Deferred Drawdown Option	WB-IBRD		500 million		December 2023
Philippines First Digital Transformation Development Policy Loan	AIIB		EUR equivalent of USD400 million		January 2024
Build Universal Health Care Program, Subprogram 2	AIIB		EUR equivalent of USD450 million		January 2024
Philippines Second Sustainable Recovery Development Policy Loan	WB-IBRD		EUR equivalent of USD750 million		August 2024

Source: International Finance Group, Department of Finance.

Public Sector Debt

The following table presents the Republic’s outstanding consolidated public sector debt as of the dates indicated.

	Outstanding Consolidated Public Sector Debt(1)
	2019		2020		2021		2022		2023(2)
	(₱ in billions, except percentages)
Outstanding Consolidated non-financial public sector debt:
Domestic		4,280.4		5,771.3		7,097.2		8,021.7		8,710.5
Foreign		2,728.9		3,201.7		3,592.9		4,226.6		4,609.2
Total		7,009.3		8,973.0		10,690.1		12,248.3		13,319.7
Financial public corporations
Bangko Sentral:(3)
Domestic		3,868.3		4,868.7		4,664.8		4,580.9		4,765.9
Foreign		193.2		183.5		330.2		340.4		345.7
Total		4,061.5		5,052.3		4,995.0		4,921.3		5,111.5
GFIs:(4)
Domestic		33.1		56.0		43.6		30.2		23.6
Foreign		130.7		113.9		104.2		117.7		85.2
Total		163.8		169.9		147.8		147.9		108.9
Domestic		3,901.4		4,924.7		4,708.4		4,611.1		4,789.5
Foreign		323.9		297.4		434.4		458.0		430.9
Total		4,225.3		5,222.1		5,142.8		5,069.2		5,220.4
Less: Intrasector-debt holdings
Domestic:
Government securities held by GFIs and Bangko Sentral		908.7		2,131.5		2,539.1		2,640.8		2,481.0
Government deposits at Bangko Sentral		159.9		798.6		907.6		431.8		379.8
GFIs deposits at Bangko Sentral		502.7		740.1		698.6		638.2		484.1
GOCC deposits at Bangko Sentral		0.2		0.0		0.0		0.0		1.42
GOCC loans/other debt held by GFIs		161.2		183.6		189.4		195.4		184.7
GFIs loans/other debt held by Bangko Sentral		53.3		36.0		36.0		27.6		27.3

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	Outstanding Consolidated Public Sector Debt(1)
	2019		2020		2021		2022		2023(2)
	(₱ in billions, except percentages)
Local governments debt held by GFIs		87.8		93.9		120.0		160.0		188.3
Total		1,874.1		3,983.7		4,490.6		4,093.9		3,746.7
Foreign:
Government’s securities held by Bangko Sentral		85.9		92.4		87.5		78.6		78.7
Total		1,960.0		4,076.1		4,578.1		4,172.5		3,825.4
Total public sector:
Domestic		6,307.7		6,712.4		7,315.0		8,538.9		9,753.3
Foreign		2,966.9		3,406.7		3,939.8		4,606.1		4,961.4
Total		9,274.6		10,119.1		11,254.8		13,145.0		14,714.8

Sources: Fiscal Policy and Planning Office; Department of Finance.

Notes:

(1) The consolidated public sector comprises the general government sector, non-financial public corporations, and financial public corporations, after elimination of intra-debt holdings among these sectors.

(2) Preliminary data as of December 31, 2023.

(3) Comprises all liabilities of Bangko Sentral (including currency issues) except for allocation of SDRs and revaluation of international reserves.

(4) Comprises all liabilities of DBP, LBP, and Trade & Investment Development Corporation.

The following table presents the Republic’s outstanding consolidated non-financial public sector debt as of the dates indicated.

	Outstanding Consolidated Non-financial Public Sector Debt(1) As of December 31,
	2019		2020		2021		2022		2023(2)
	(₱ in billions, except percentages)
Total(3)		7,009.3		8,973.0		10,690.1		12,248.3		13,319.7
Domestic		4,280.4		5,771.3		7,097.2		8,021.7		8,710.5
Foreign		2,728.9		3,201.7		3,592.9		4,226.6		4,609.2
National Government		7,731.3		9,795.0		11,728.5		13,418.9		14,616.3
Domestic		5,127.6		6,694.7		8,170.4		9,208.4		10,017.9
Foreign		2,603.7		3,100.3		3,558.1		4,210.5		4,598.3
Non-financial public corporations (major GOCCs)(4)		430.2		399.7		367.3		347.4		300.4
Domestic(4)		236.7		234.2		246.7		236.7		191.7
Foreign(4)		193.6		165.5		120.6		110.7		108.8
Extrabudgetary: NIA and PNR		1.2		1.1		1.0		0.9		0.8
Domestic		0.0		0.0		0.0		0.0		0.0
Foreign		1.2		1.0		1.0		0.9		0.8
Local government units(5)		107.2		113.1		136.6		174.5		200.9
Domestic		107.2		113.1		136.6		174.5		200.9
Foreign		0.0		0.0		0.0		0.0		0.0
Less: Government debt held by Bond Sinking Funds)(6)		562.0		640.0		698.6		706.3		696.8
Domestic		497.4		579.5		616.7		616.3		603.6
Foreign		64.6		60.5		81.9		90.0		93.3
Intra-sector debt holdings (domestic)		623.4		638.2		801.2		952.5		1,084.6
Government debt held by SSIs		613.9		628.6		791.9		943.8		1,076.9

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	Outstanding Consolidated Non-financial Public Sector Debt(1) As of December 31,
	2019			2020			2021			2022			2023(2)
	(₱ in billions, except percentages)
Government debt held by LGUs		0.01			0.01			0.00			0.00			0.0
LGU loans held by MDFO		9.5			9.6			9.3			8.7			7.7
Government debt held by GOCCs		25.1			11.2			9.7			8.8			2.4
Onlending from National Government to GOCCs		45.3			41.8			28.9			20.3			9.4
Infra-sector debt holdings (external)		4.9			4.7			4.9			5.4			5.4
GOCCs debt held by National Government		4.9			4.7			4.9			5.4			5.4
Total (as % of GDP)		47.5	%		56.4	%		58.0	%		59.7	%		60.5	%
Domestic (as % of GDP)		32.3	%		37.4	%		37.7	%		38.8	%		40.1	%
Foreign (as % of GDP)		15.2	%		19.0	%		20.3	%		20.9	%		20.4	%

Sources: Fiscal Policy and Planning Office; Department of Finance.

Notes:

(1) The consolidated non-financial public sector comprises the general government sector and non-financial public corporations. The consolidated non-financial public sector does not include financial public corporations.

(2) Preliminary data as of December 31, 2023.

(3) Government debt under the revised methodology excludes contingent obligations.

(4) Excludes extrabudgetary items (MA and PNR).

(5) Borrowings from private banks guaranteed by the LGUs since the fourth quarter of 2016.

(6) Including Securities Stabilization Fund and adjustment in the Government debt held by the Bond Sinking Fund.

As of December 31, 2023, the outstanding consolidated public sector debt was ₱14.7 trillion, equivalent to 60.5% of the Republic’s GDP, compared with a public sector-debt-to-GDP ratio of 59.7% as of December 31, 2023. As of December 31, 2023, total outstanding consolidated GG debt was ₱13.0 trillion, reflecting a 8.8% increase over the ₱11.9 trillion recorded as of December 31, 2022. Total domestic debt increased by 8.8% to ₱10.0 trillion as of December 31, 2023 from ₱9.2 trillion as of December 31, 2022. Foreign debt increased by 9.2% to ₱4.6 trillion as of December 31, 2023 from ₱4.2 trillion as of December 31, 2022.

Direct Debt of the Republic

The following table summarizes the outstanding direct debt of the Republic as of the dates indicated.

	Outstanding Direct Debt of the Republic(1)(2) As of December 31,
	2019		2020		2021		2022		2023		2024(3)
	(₱ in millions, except as otherwise indicated)
Medium/long-term debt(4)		7,240,159		8,838,966		10,932,406		13,008,499		14,071,375		14,829,523
Domestic		4,636,469		5,738,647		7,374,271		8,798,026		9,473,038		9,919,140
External (U.S.$)		51,252		64,562		69,803		75,436		82,976		83,712
Short-term debt)(5)
Domestic		491,131		956,040		796,143		410,361		544,892		653,976
Total debt		7,731,290		9,795,006		11,728,549		13,418,860		14,616,267		15,483,499

Sources: Bureau of the Treasury; Department of Finance.

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Notes:

(1) Includes Government debt that is on-lent to GOCCs and other public sector entities. Excludes debt guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government. The table reflects debt of the Government only and does not include any other public sector debt.

(2) Amounts in original currencies were translated into U.S. dollars or pesos, using the Bangko Sentral’s reference exchange rates at the end of each period.

(3) Preliminary data as of June 30, 2024.

(4) Debt with original maturities of one year or longer.

(5) Debt with original maturities of less than one year.

Direct Domestic Debt of the Republic

The following table summarizes the outstanding direct domestic debt of the Republic as of the dates indicated.

	Outstanding Direct Domestic Debt of the Republic(1)(2) As of December 31,
	2019		2020		2021		2022		2023		2024(3)
	(₱ in millions)
Loans
Direct		156		156		156		156		156		156
Assumed(4)		792		792		0		0		0		0
Total loans		948		948		156		156		156		156
Securities
Treasury bills		486,170		949,478		796,143		410,361		529,892		638,976
Treasury notes/bonds		4,640,482		5,744,261		7,374,115		8,797,870		9,502,882		9,933,984
Total securities		5,126,652		6,693,739		8,170,258		9,208,231		10,017,930		10,573,116
Total debt		7,731,290		9,795,006		11,728,549		13,418,860		14,616,267		15,483,499

Sources: Bureau of the Treasury; Department of Finance.

Notes:

(1) Includes Government debt that is on-lent to GOCCs and other public sector entities. Excludes debt guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government. The table reflects debt of the Government only, and does not include any other public sector debt.

(2) Amounts in original currencies were translated into U.S. dollars or pesos, as applicable, using the Bangko Sentral’s reference exchange rates at the end of each period.

(3) Preliminary data as of June 30, 2024. Amounts in original currencies were translated into U.S. dollars or pesos, as applicable, using Bangko Sentral’s reference exchange rates as of July 1, 2024, which was the next business day following the end of the period indicated.

(4) Assumed loans of Development Bank of the Philippines, the National Development Company and the Philippine National Bank.

E-45

The following table sets out the direct domestic debt service requirements of the Republic for the years indicated.

	Direct Domestic Debt Service Requirements of the  Republic(1)
	Principal Repayments		Interest Payments		Total(2)
	(₱ in millions)				(₱ in millions)		($ in millions)
Year
2019		344,475		250,298		594,773		11,721
2020		440,401		279,056		719,457		14,977
2021		537,450		333,335		870,785		17,150
2022		659,834		383,452		1,043,286		18,590
2023		854,165		435,742		1,289,907		23,214
2024(3)		1,020,548		547,475		1,568,023		28,219
2025(3)		984,993		629,076		1,614,069		29,047

Sources: Bureau of the Treasury; Department of Finance.

Notes:

(1) Excludes debt service in respect of Government debt that is on-lent to GOCCs and other public sector entities guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government.

(2) Amounts in pesos were translated into U.S. dollars using the applicable Bangko Sentral reference exchange rates at the end of each period. For the period from 2024 to 2025, amounts in pesos were translated into U.S. dollars using the Bangko Sentral’s reference exchange rates as of December 31, 2023.

(3) Projection based on outstanding balance as of June 30, 2024.

Direct External Debt of the Republic

The following table summarizes the outstanding direct external debt of the Republic as of the dates indicated.

	Outstanding Direct External Debt of the Republic(1)(2) As of December 31,
	2019		2020		2021		2022		2023		2024(3)
	($ in millions)
Loans
Multilateral		12,793		19,275		22,574		25,155		28,890		30,526
Bilateral		6,484		8,042		8,308		8,581		9,254		8,555
Commercial		5		2		1		1		0		0
Total loans		19,282		27,319		30,883		33,737		38,144		39,081
Securities:
Euro Bonds		841		2,387		4,609		4,320		3,811		3,706
Yen Bonds		3,184		2,388		1,687		1,787		1,615		1,073
Philippine Peso Notes		2,553		2,700		1,679		981		988		934
Chinese Yuan Bonds		569		607		392		0		0		0
U.S. Dollar Bonds		24,823		29,161		30,553		34,611		37,418		37,918
Total securities		31,970		37,243		38,920		41,699		44,832		44,631
Total		51,252		64,562		69,803		75,436		82,976		83,712

Sources: Bureau of the Treasury; Department of Finance.

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Notes:

(1) Includes Government debt that is on-lent to GOCCs and other public sector entities. Excludes debt guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government. The table reflects debt of the Government only, and does not include any other public sector debt.

(2) Amounts in original currencies were translated into U.S. dollars using the applicable Bangko Sentral reference exchange rates at the end of each period.

(3) Preliminary data as of June 30, 2024.

The following table sets out, by designated currency and the equivalent amount in U.S. dollars, the outstanding direct external debt of the Republic as of the date indicated.

	Summary of Outstanding Direct External Debt of the Republic by Currency(1)
	As of June 30, 2024
	Amount in Original Currency		Equivalent Amount in $(2)		% of Total
	(in millions, unless otherwise indicated, except percentages)
U.S. dollar		69,299		69,299		82.8	%
Japanese yen		1,224,027		7,611		9.1	%
Euro		4,982		5,352		6.4	%
Peso		54,787		934		1.1	%
Other currencies		—		516		0.6	%
Total		—		82,621		100.0	%

Sources: Bureau of the Treasury; Department of Finance.

Notes:

(1) Includes Government debt that is on-lent to GOCCs and other public sector entities. Excludes debt guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government. The table reflects debt of the Government only and does not include any other public sector debt.

(2) Includes Government debt that is on-lent to GOCCs and other public sector entities. Excludes debt guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government. The table reflects debt of the Government only and does not include any other public sector debt.

(3) Amounts in original currencies were translated into U.S. dollars using Bangko Sentral’s reference exchange rates as of July 1, 2024, which was the next business day following the end of the period indicated.

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The following table sets out the direct external debt service requirements of the Republic for the years indicated.

	Direct External Debt Service Requirements of the Republic(1)
	Principal Repayments		Interest Payments		Total
	($ in millions)
Year
2019(2)		2,702		2,179		4,881
2020(2)		2,949		2,110		5,059
2021(2)		4,671		1,893		6,564
2022(2)		2,325		2,128		4,453
2023(2)		2,177		3,462		5,639
2024(3)(4)		4,367		3,887		8,254
2025(3)(4)		3,920		3,940		7,860

Sources: Bureau of the Treasury; Department of Finance.

Notes:

(1) Excludes debt service in respect of Government debt that is on-lent to GOCCs and other public sector entities or guaranteed by the Government and debt originally guaranteed by other public sector entities for which the guarantee has been assumed by the Government.

(2) Amounts in original currencies were translated into U.S. dollars using the applicable Bangko Sentral reference exchange rates at the end of each period.

(3) Amounts in original currencies were translated into U.S. dollars using the applicable Bangko Sentral reference exchange rates prevailing on December 31, 2023.

(4) Projection based on outstanding balance as of June 30, 2024.

Government-Guaranteed Debt

The following table sets out guarantees of indebtedness by the Republic, including guarantees assumed by the Government, as of the dates indicated.

	Summary of Outstanding Guarantees of the Republic(1)(2) As of December 31,										As of June 30,(1)(3)
	2019		2020		2021		2022		2023		2024
	(in billions)
Total (₱)		488.7		458.3		423.9		399.0		349.4		343.6
Domestic (₱)		260.8		254.4		195.1		205.8		181.8		182.6
External (₱)		228.0		203.9		228.8		193.3		167.7		161.1
External ($)(4)		4.5		4.2		4.5		3.5		3.0		2.7

Sources: Bureau of the Treasury; Department of Finance.

Notes:

(1) Includes debt originally guaranteed by the Government and debt guaranteed by other public sector entities for which the guarantee has been assumed by the Government.

(2) Amounts in original currencies were translated into U.S. dollars or pesos, as applicable, using Bangko Sentral’s reference exchange rates at the end of each period.

(3) Based on preliminary data as of June 30, 2024.

(4) Amounts in original currencies were translated into U.S. dollars using the applicable Bangko Sentral reference exchange rates as of July 1, 2024, which was the next business day following the end of the period indicated.

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Payment History of Foreign Debt

The following table sets out the outstanding foreign-currency bonds issued by the Republic as of the dates indicated.

	Foreign Currency Bonds Issued by the Republic(1)
	Original Balance as of Issue Date(2)		Outstanding Balance as of December 31, 2022(3)		Outstanding Balance as of December 31, 2023(4)		Outstanding Balance as of June 30, 2024(5)
	($ in millions)
U.S. dollar bonds		42,811.4		34,423		37,318		37,918
Chinese Yuan Bond		344.0		0		0		0
Euro Bonds		4,364.3		4,320		3,811		3,706
Japanese yen bonds		1,806.2		1,787		1,615		1,073
Islamic Certificates		1,000.0		0		1,000		1,000
Total foreign-currency bonds		50,325.9		41,699		44,832		44,631

Sources: Bureau of the Treasury; Department of Finance

Notes:

(1) Excludes debt securities of GOCCs and other public sector entities guaranteed by the Government.

(2) Represents the aggregate of the original balances as of the issue dates of foreign currency bonds outstanding as of December 31, 2023. Amounts in original currencies were translated into U.S. dollars using the applicable Bangko Sentral reference exchange rates prevailing on the date of issuance.

(3) Amounts in original currencies were translated into U.S. dollars using Bangko Sentral’s reference exchange rates as of January 3, 2023, which was the next business day following the end of the period indicated.

(4) Amounts in original currencies were translated into U.S. dollars using Bangko Sentral’s reference exchange rates as of January 2, 2024, which was the next business day following the end of the period indicated.

(5) Amounts in original currencies were translated into U.S. dollars using Bangko Sentral’s reference exchange rates as of July 1, 2024, which was the next business day following the end of the period indicated.

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