Philippine FDI falls 23.9% in January–July
By Francis Allan L. Angelo
Foreign direct investment (FDI) net inflows into the Philippines fell 23.9% to USD 4.071 billion in January–July 2026 from USD 5.350 billion a year earlier, according to the Bangko Sentral ng Pilipinas (BSP).
The decline means less foreign direct investment financing entered the economy, with potential implications for business expansion and employment. The figures do not establish how many projects or jobs were affected.
In its Oct. 12 release, the BSP reported lower inflows across all major FDI components during the first seven months.
Net investments in debt instruments accounted for the largest decline, falling 30.6% to USD 2.428 billion from USD 3.498 billion.
These investments consist mainly of intercompany borrowing and lending between foreign direct investors and their Philippine subsidiaries or affiliates. They also include reverse investments by nonresident subsidiaries or associates in their resident direct investors.
Reinvested earnings dropped 14.2% to USD 968 million from USD 1.127 billion, while net equity investments other than reinvested earnings fell 6.9% to USD 675 million from USD 725 million.
Equity capital placements totaled USD 924 million, down from USD 1.206 billion. Withdrawals also declined, to USD 249 million from USD 481 million.
Combined equity and investment fund shares, which include reinvested earnings, reached USD 1.643 billion, compared with USD 1.852 billion a year earlier.
Capital placements came primarily from Japan, the United States, and Singapore, the BSP said.
The funds went largely into manufacturing, financial and insurance activities, and real estate.
For July alone, net FDI inflows fell 44.1% to USD 689 million from USD 1.233 billion in July 2025.
Net debt investments declined 49.1% to USD 365 million from USD 717 million, while net equity investments other than reinvested earnings dropped 55.5% to USD 186 million from USD 418 million.
July equity placements decreased to USD 199 million from USD 460 million, alongside a decline in withdrawals to USD 13 million from USD 42 million.
Reinvested earnings provided a partial offset, rising 39.9% to USD 138 million from USD 99 million. Combined equity and investment fund shares nevertheless fell to USD 324 million from USD 517 million.
The July decline followed a 35.1% year-on-year increase in June, when net inflows reached USD 447 million. The cumulative contraction widened from 17.8% in January–June to 23.9% in January–July.
The BSP chart placed full-year net FDI inflows at USD 11.983 billion in 2021, USD 9.492 billion in 2022, USD 8.925 billion in 2023, USD 9.398 billion in 2024, and USD 8.122 billion in 2025.
The BSP compiles FDI statistics under the sixth edition of the Balance of Payments and International Investment Position Manual, or BPM6.
FDI covers a nonresident investor’s investment in a resident enterprise with at least 10% equity participation, as well as reverse investment. It may take the form of equity capital, reinvested earnings, or borrowings.
The BSP measures actual investment inflows in net terms, including equity placements less withdrawals.
The Philippine Statistics Authority’s approved foreign investment figures, sourced from investment promotion agencies, measure commitments that may not be fully realized within a given period. Those figures do not apply the BPM6 10% ownership criterion or deduct equity withdrawals.
The BSP marked the 2025 and 2026 figures as preliminary. Rounded components may not add up to the reported totals.
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