PH FDI net inflows up 21% in May 2025

Net foreign direct investments (FDI) into the Philippines rose by 21.3 percent year-on-year in May 2025, driven mainly by higher lending from foreign investors to local affiliates, according to the Bangko Sentral ng Pilipinas (BSP).

Data showed that FDI inflows increased from USD 483 million (about PHP 28.1 billion) in May 2024 to USD 586 million (about PHP 34.1 billion) in May 2025.

The BSP said the growth was fueled by an 88.3 percent surge in nonresidents’ net investments in debt instruments, which climbed from USD 227 million to USD 427 million (about PHP 13.6 billion to PHP 24.9 billion).

Reinvestment of earnings was relatively stable at USD 97 million (about PHP 5.6 billion).

However, the gains were partly offset by a 61.4 percent drop in nonresidents’ net equity capital investments, excluding reinvested earnings, which fell from USD 161 million to USD 62 million (about PHP 9.4 billion to PHP 3.6 billion).

Equity capital placements in May came mostly from the United States, Japan, Singapore, and South Korea.

The manufacturing sector attracted the largest share, followed by real estate, and electricity, gas, steam, and air-conditioning supply.

From January to May 2025, net FDI inflows reached USD 3 billion (about PHP 174.7 billion), down 26.9 percent from USD 4 billion in the same period last year.

The BSP said its FDI statistics are based on actual investment inflows following the Balance of Payments and International Investment Position Manual, 6th Edition, and differ from investment approvals reported by the Philippine Statistics Authority.

FDI covers equity capital, reinvestment of earnings, and intercompany borrowings between foreign investors and their local subsidiaries or affiliates.