Foreign direct investments net inflows jump to $1.3 billion in July 2025 –BSP

Investment inflows into the country by foreign investors saw their highest for the year in July, rising above $1 billion, data released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed.

BSP data showed that foreign direct investments (FDI) —a key source of jobs and capital for the local economy— stood at a net inflow of $1.3 billion from $376 million in June.

The central bank said investment inflows from Japan and into wholesale and retail trade took the lead.

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 non-resident subsidiaries or associates in their resident direct investors/

“The amount is considered ‘decent’ above $1 billion… which is the highest in a year and also among the highest since the pandemic started in 2020, still an encouraging signal as a proxy for international investor confidence on the Philippines," Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

He said FDI was still a bright spot for the Philippine economy in terms of creating more jobs and other business/economic opportunities in the local economy.

Year-on-year, FDI net inflows declined by 7.5% from US$1.4 billion in July 2024.

The year-on-year decrease in FDI net inflows in July 2025 resulted from lower nonresidents’ net investments in debt instruments, which fell by 39.4%, from $1.2 billion to $711 million, according to the BSP.

The central bank, however, said the reduction was tempered by the 450.6% increase in nonresidents’ net investments in equity capital, which grew from $76 million to $418 million. 

Similarly, reinvestment of earnings grew by 14.3%, from $122 million to $139 million. 

The BSP said equity capital placements in July 2025 were sourced primarily from Japan and the United States.  

The central bank added industries that received most of these investments were wholesale and retail trade, manufacturing, and real estate.

On a cumulative basis, FDI net inflows declined by 20% from the $5.9 billion posted in January to July 2024 to $4.7 billion from January to July 2025. –NB, GMA Integrated News