June FDI net inflows slip to six-month low

Investment inflows into the Philippines fell to a six-month low of $376 million in June to reflect the shift in foreign investments in equity capital, data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed.

Central bank data showed that foreign direct investments (FDI) net inflows — a key source of jobs and capital for the local economy — saw a 17.8% drop from $457 million in June last year, and lower than the upwardly revised $598 million in May.

FDIs are actual investment inflows into the country in the form of equity capital, reinvestment of earnings, and borrowings. This includes investments by non-resident direct investors of at least 10%, and investments by nonresident subsidiaries or associates in their resident direct investor.

Net inflows for June were also the lowest in six months, since the $356 million recorded in December 2024.

“The slowdown in FDI net inflows during the month reflected the shift in nonresidents’ net investments in equity capital (other than reinvestment of earnings),” the BSP said in an accompanying statement.

Equity capital placements for the month posted $57-million in outflows, following the $85-million outflows in June 2024, and the $62-million outflows in May.

This was partly offset by reinvestment of earnings, which grew 36.7% to $128 million from $94 million last year, and higher than the $97 million in the previous month.

Placements came primarily from Japan which accounted for 62%, followed by the United States with 16%, and South Korea with 9%. These were channeled mostly into manufacturing, real estate, and wholesale and retail trade.

Year-to-date net inflows came in at $3.418 billion, reflecting a 23.8% drop from the $4.486 billion in the comparable period of 2024. — RSJ, GMA Integrated News