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Foreign Investment Pledges Decline 64%
August 15, 2025
|The Philippine Star
Investment pledges from foreign firms fell by 64 percent in the second quarter from a year ago as US reciprocal tariffs and geopolitical tensions weighed on investor sentiment.
Philippine Statistics Authority (PSA) data released yesterday showed that total foreign investments registered with investment promotion agencies (IPA) declined sharply to P67.38 billion in the second quarter from P189.50 billion in the same period last year.
The foreign investment commitments in the second quarter were approved by the following IPAs: the Authority of the Freeport Area of Bataan, Board of Investments, Bangsamoro Board of Investments, Clark Development Corp., Clark International Airport Corp., Philippine Economic Zone Authority and Subic Bay Metropolitan Authority.
Oikonomia Advisory and Research Inc. economist Reinielle Matt Erece said in an email that the significant decline in investments may be due to the pessimistic investor sentiment in the world today amid trade tensions especially over US President Donald Trump's reciprocal tariffs, as well as geopolitical conflicts in the Middle East.
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