Philippines posts USD 376 million FDI inflows in June

Net foreign direct investment (FDI) inflows to the Philippines reached USD 376 million in June 2025, supported by reinvested earnings and debt instruments despite a decline in equity capital.

According to data from the Bangko Sentral ng Pilipinas (BSP), this figure reflects a 17.8% drop from the USD 457 million recorded in June 2024.

The decrease was mainly due to a reversal in nonresidents’ net investments in equity capital, which shifted from a USD 85 million inflow in June 2024 to a USD 57 million outflow in June 2025.

However, the contraction was partially mitigated by a 36.7% increase in reinvestment of earnings, which rose from USD 94 million to USD 128 million year-on-year.

Net investments in debt instruments—primarily intercompany borrowings between foreign investors and their Philippine affiliates—also increased by 9.3%, from USD 279 million to USD 305 million.

Japan, the United States, and South Korea were the primary sources of equity capital placements in June 2025.

The manufacturing, real estate, and wholesale and retail trade sectors received the majority of these foreign capital inflows.

From January to June 2025, total FDI net inflows amounted to USD 3.4 billion, down 23.8% from the USD 4.5 billion posted in the same period in 2024.

The BSP compiles its FDI statistics using the Balance of Payments and International Investment Position Manual, 6th Edition (BPM6), which tracks actual investment flows rather than approvals or commitments.

Unlike investment data from the Philippine Statistics Authority (PSA), BSP data reflect equity positions of at least 10% and are presented in net terms, accounting for withdrawals.

The decline in FDI underscores lingering investor caution amid global economic headwinds, even as reinvestments and intercompany lending signal sustained foreign confidence in Philippine-based operations.