Approved foreign investments lowest in more than a year

APPROVED foreign investments in the Philippines slumped further by 82% in the first quarter to the lowest in one-anda-half years, according to the local statistics agency, as US President Donald J. Trump tries to undo decades of global economic integration through his sweeping tariff increases.

- By Pierce Oel A. Montalvo Researcher

Foreign investment commitments approved by the country's investment promotion agencies plunged to P27.99 billion from P155.26 billion a year earlier, according to data from the Philippine Statistics Authority (PSA) posted on its website on Thursday.

This was also 51.5% lower than a quarter earlier and the lowest since the P27.46 billion logged in the third quarter of 2023.

"The main reasons are the geopolitical uncertainties and trade disruptions caused by Trump's tariffs," Calixto V. Chikiamco, president at Manila-based Foundation for Economic Freedom, said in a Viber message.

"These factors are aggravating the already dire unfavorable climate for foreign investments, from high food inflation to lack of infrastructure and internal political divisions," he added.

While Mr. Trump's announcement of sweeping reciprocal tariffs on US trade partners did not come until April, he had threatened to increase duties during his campaign last year.

He later suspended these tariffs for 90 days starting April 9, imposing a 10% base tariff instead until July, pending negotiations.