July FDI net inflows hit $1.3 billion

Net inflows of foreign direct investments (FDI) into the Philippines declined in July but hit their highest level in a year, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

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FDI net inflows went down by 7.5% to $1.268 billion in July from $1.37 billion the same month a year ago, but was the highest monthly tally seen since.

Meanwhile, month on month, FDIs surged from the $376-million net inflow recorded in June.

“Net foreign direct investments into the Philippines remained positive in July 2025, with inflows from Japan and into wholesale and retail trade taking the lead,” the BSP said in a statement.

It added that the year-on-year decline was mainly due to the 39.4% drop in net investments by foreigners in debt instruments to $711 million from $1.172 billion a year prior.

This decrease was tempered by the 181.7% growth in nonresidents overall investments in equity and investment fund shares to $557 million from $198 million.

Broken down, foreigners' net investments in equity capital other than reinvestment of earnings ballooned by 450.6% to $418 million in July from $76 million last year.

This, as equity placements surged by 241.7% to $460 from $135 million, while withdrawals declined by 28.4% to $42 million from $59 million.

The bulk or 89% of the equity capital placements in July came from Japan, while 8% were from the United States.

These were invested mainly in wholesale and retail trade (73%), followed by manufacturing (12%), and real estate activities (8%).