FDI net inflows slump in August

NET INFLOWS of foreign direct investments (FDI) into the Philippines slumped by 40.5% in August, amid a drop in net investments in debt instruments, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.

- By Katherine K. Chan

Preliminary central bank data showed that net inflows declined by 40.5% year on year to $494 million from $830 million in the same month in 2024.

This was the lowest amount in two months or since the $376 million recorded in June.

Month on month, FDIs plunged by 61% from $1.268 billion in July.

“Net foreign direct investments into the Philippines remained positive in August 2025, with inflows from Japan and into manufacturing taking the lead,” the BSP said in a statement on Monday.

Net investments in debt instruments slumped by 73.8% to $145 million in August from $553 million a year ago.

These consisted mainly of intercompany borrowing or lending between foreign direct investors and their subsidiaries or affiliates in the Philippines, according to the central bank.

Meanwhile, investments in equity and investment fund shares rose by 26.1% to $349 million in August from $276 million in the same month last year.

Nonresidents’ net investments in equity capital, excluding reinvestment of earnings, more than doubled to $146 million from $66 million last year.

Equity placements grew by 53.2% to $158 million from $103 million a year ago, while withdrawals declined by 66.2% to $13 million from $37 million a year earlier.

Reinvestment of earnings also slipped by 3.6% to $203 million in August from $210 million a year ago.