FDI inflow declines sharply in February

Foreign direct investments (FDI) in the Philippines declined sharply in February as the Bangko Sentral ng Pilipinas (BSP) registered net inflows of $529 million, the lowest in two months or since the $110 million posted in December.

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The February figure marked a steep 61.9 percent drop from the $1.39 billion in net inflows seen in the same month in 2024, largely due to base effects from the previous year’s high.

It was also 38.2 percent lower than the $731 million net inflows recorded in January.

“The decline in FDI net inflows reflected the 85.9 percent contraction in non-residents’ net investments in equity capital (other than reinvestment of earnings),” the central bank said in a statement.

FDI inflows represent long-term investments by foreign firms in the local economy, often seen as a vote of confidence in a country’s growth prospects.