Philippine foreign investment inflows down 17.8% in first half of 2026

Net inflows of foreign direct investments (FDIs) declined in June as net equity investments swung into negative territory while net investments in debt instruments fell, data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed.

Central bank data show that FDI net inflows stood at $447 million in June, lower than the $638 million in May but higher than the $331 million recorded a year ago.

Data on FDI include investment by a nonresident direct investor in a Philippine-based enterprise in which the investor owns at least 10% of the company's equity. It also includes investments made by a foreign subsidiary or associate in its Philippine parent or direct investor.

FDIs can be in the form of equity capital, reinvestment of earnings, and borrowings.

Net equity investments for the month were -$52 million, reversing the $77 million net inflows in May but improving from the -$57 million last year. Reinvestment of earnings rose to $130 million from $99 million in May and $91 million a year ago.

Net debt instruments stood at $369 million, compared with $462 million in May and above the $297 million last year.

This brought year-to-date net FDI inflows to $3.382 billion, a 17.8% decrease from $4.116 billion in the first six months of 2025.

"The decline was driven by the decreases in both foreign net investments in debt instruments, which indicated lower intercompany borrowings, and reinvestment of earnings," the BSP said in an accompanying statement.

Year-to-date net equity investments stood at $489 million, below $541 million the previous month but above $307 million posted in the same period last year.

These came mostly from Japan, the United States, and Singapore, channeled largely into the manufacturing, financial and insurance, and real estate industries.

Reinvestment of earnings stood at $829 million, up from $699 million in May, but lower than the $1.028 billion last year.

Net debt instruments were recorded at $2.063 billion, down from $2.781 billion in the comparable period of 2025. — VDV, GMA News