FDI flows to Philippines down 62% in February

Table from the BSP

MANILA, Philippine — The Philippines captured $529 million in foreign direct investment (FDI) net inflows in February, 61.9 percent lower than the level in the same period last year, amid heightened global uncertainties.

This decrease in FDIs, which are typically more durable form of investments as they stay longer and usually go to capital and labor-intensive industries, was primarily attributed by the Bangko Sentral ng Pilipinas (BSP) to base effects.

In February, these investments were largely directed toward the manufacturing, financial and insurance, real estate and information and communication industries.

This was as global uncertainties started to escalate under the presidency of United States President Donald Trump, who later shook up the world with his sweeping tariffs.

READ: Foreign direct investments fall 20% in January

The decline in FDI net inflows reflected the 85.9 percent contraction in nonresidents’ net investments in equity capital (other than reinvestment of earnings) to $108 million from $764 million in February 2024, the BSP said.

Similarly, nonresidents’ net investments in debt instruments and their reinvestment of earnings declined by 35.4 percent and 13.1 percent, respectively, to $348 million and $73 million.

READ: FDIs missed 2024 forecast amid uncertainties — BSP

The bulk of the equity capital placements came from Japan, the United States, Ireland and Malaysia.

Table from BSP

This brought two-month FDI net inflows to $1.3 billion, lower by 45.2 percent than the $2.3 billion net inflows recorded in January-February 2024.

Japan was the country’s largest source of FDIs, accounting for a 56-percent share in February. It was followed by the United States, with 11 percent, Ireland with 10 percent and Malaysia with 5 percent.– Doris Dumlao-Abadilla

Table from BSP