FDI net inflows slump to five-year low in 2025

Net inflows of foreign direct investments (FDIs) into the Philippines plummeted to $7.791 billion in 2025, its lowest level in five years, preliminary Bangko Sentral ng Pilipinas (BSP) data showed.

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This was the lowest yearly FDI level since 2020 or when net inflows slumped to $6.822 billion.

Excluding the pandemic period, this was the lowest since the $5.639 billion FDI net inflows in 2015.

The end-2025 tally was also 17.1% lower than the $9.398 billion in 2024, but exceeded the BSP’s $7-billion estimate for the year.

"For the full year of 2025, equity capital placements were sourced primarily from Japan, the United States, Singapore, and South Korea, and were channeled largely into the manufacturing, wholesale and retail trade, and financial and insurance industries," the central bank said in a statement released late Tuesday.

The full-year level was dragged down by the 27% year-on-year decline in net investments in debt instruments to $5.269 billion from $7.221 billion in 2024.