FDI inflow in Sept lowest in 5 years

Foreign direct investments (FDI) into the Philippines fell to a five-year low in September as foreign firms held back expansion plans amid persistent global uncertainty and weaker domestic sentiment.

- By KEISHA TA-ASAN

Data from the Bangko Sentral Pilipinas (BSP) showed that net inflow fell by 25.8 percent to $320 million in September from $432 million in the same month last year.

The September print marked the weakest level since the $314-million figure in April 2020, at the height of the COVID-19 pandemic.

Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the month's performance captures the difficult investment environment faced by emerging markets.

"September's FDI slump to a five-year low reflects global uncertainty, high borrowing costs and lingering policy gaps," Ravelas said.

In the coming months, Ravelas expects investment flows to remain moderate unless confidence improves.