Philippine FDI net inflows down 40.5% in August

Foreign direct investments (FDIs) — a key source of jobs and capital for the local economy —  saw a double-digit annual decline in August, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.

Central bank data revealed that FDI net inflows stood at $494 million in August, reflecting a 40.5% drop from the $830 million the same month last year. It is also lower than the $1.268-billion net inflows in July.

Equity capital placements, excluding reinvestment of earnings, increased by 121.0% to $146 million from $66 million, while reinvestment of earnings fell by 3.6% to $203 million. Net debt instruments dropped by 73.8% to $145 million.

This brought the year-to-date FDI net inflows to $5.179 billion, down by 22.5% from the $6.686 billion recorded in the comparable period of 2024.

Equity capital placements for the eight-month period were recorded at $870 million, largely coming from Japan, the United States, Singapore, and South Korea. These were channeled mostly into manufacturing, wholesale and retail trade, and real estate. —KG, GMA Integrated News