FDI into the Philippines Slumps 58.8% in April

Net foreign direct investment (FDI) in the Philippines plunged 58.8% year-on-year to an almost a decade-low of USD 250 million in April 2026. The decline was driven by a 91.7% drop in net investments in debt instruments and a 1.9% decrease in reinvested earnings, which more than offset a 3,040.6% surge in equity capital investments other than reinvestment of earnings. In the first four months of 2026, net FDI inflows fell 26.5% year-on-year to USD 1.97 billion, as declines in net investments in debt instruments (-40.3%) and reinvested earnings (-14.0%) outweighed a 53.7% increase in equity capital investments. Equity capital placements continued to be sourced mainly from Japan, the United States, and Singapore and were directed primarily to the manufacturing, financial and insurance, and real estate sectors.

Net foreign direct investment (FDI) in the Philippines rose by 26.1% year-on-year to USD 611 million in March. The increase was driven by a 62.1% jump in net equity capital investments other than reinvestment of earnings, alongside a 26% rise in reinvested earnings and a 14.6% gain in net investments in debt instruments. Equity capital placements were largely sourced from Japan, the United States, and Singapore and were mainly directed toward the manufacturing, financial and insurance, and real estate sectors. Despite the annual gain, inflows were 4.2% lower than February’s USD 638 million. For the first quarter, net FDI inflows fell by 17% to USD 1.72 billion, as declines in debt instruments (-22.7%) and reinvested earnings (-17.9%) outweighed a 13.1% increase in equity capital investments. During the period, equity capital placements continued to be dominated by Japan, the US, and Singapore.

Net foreign direct investment (FDI) in the Philippines declined by 31% year-on-year to USD 0.6 billion in February 2026. The drop was mainly due to a sharp fall in debt instruments (-39.1%), which more than offset increases in equity and investment fund shares (0.6%) and reinvestment of earnings (12.0%). The US was the leading source of FDIs, while corporations engaged in financial and insurance activities received the largest share of inflows during the month. For the January-February period, net FDI inflows totaled USD 1.0 billion, down 34.8% from USD 1.6 billion recorded in the same period a year earlier. During this period, equity capital placements mainly came from Japan, the US, and Singapore, and were largely channeled into the manufacturing, financial and insurance, and real estate sectors.