FDI inflows fall to $2.18 billion in January-May 2026, including 11-year low in May

Foreign investment inflows into the country fell to $2.18 billion in the period covering the first five months of 2026, data from Bangko Sentral ng Pilipinas (BSP) shows.

Previous central bank data showed that FDIs—a key source of jobs and capital for the local economy—hit a four-month low of $443 million in January, $638 million in February, and $611 million in March, before falling to a nearly-ten-year low of $250 million in April and an even bigger 11-year low of $210 million in May, down nearly 65% from $586 million in May 2025.

Image: Bangko Sentral ng Pilipinas

FDIs are actual investment inflows into the country in the form of equity capital, reinvestment of earnings, and borrowings. This includes investments by foreign investors in Philippine companies in which they own at least a 10% stake, including funds from overseas affiliates to their Philippine parent firms.

"The decline was driven by lower foreign net investments in debt instruments and reinvestment of earnings, which more than offset the increase in net equity capital investments (other than reinvestment of earnings)," the BSP said.

"This reflected lower intercompany borrowings from foreign direct investors and reduced earnings retained for reinvestment during the period."

Equity capital placements for this period were mainly from Japan, the US, and Singapore, largely into the manufacturing, financial and insurance, and real estate industries. — BM, GMA News