Foreign direct investments (FDIs) in the Philippines surged to their highest level this year in July, reaching a net inflow of $1.3 billion, according to data released by the Bangko Sentral ng Pilipinas (BSP) on Friday.
The figure marked a sharp rise from $376 million in June, with the central bank attributing the strong performance mainly to increased inflows from Japan and higher investments in wholesale and retail trade.
FDIs represent actual investments entering the country in the form of equity capital, reinvested earnings, and borrowings by foreign entities owning at least 10% of a local company.
Rizal Commercial Banking Corp. chief economist Michael Ricafort described the July inflow as “decent” and “among the highest since the pandemic started in 2020,” noting that it signals improving international investor confidence in the Philippine economy. He added that foreign investments continue to serve as a “bright spot” for job creation and business opportunities.
However, year-on-year data showed a 7.5% decline from the $1.4 billion recorded in July 2024, due mainly to lower investments in debt instruments, which dropped by 39.4% to $711 million.
The BSP said the decline was partly offset by a 450.6% jump in equity capital placements, climbing from $76 million to $418 million, and a 14.3% increase in reinvested earnings to $139 million.
The central bank identified Japan and the United States as the top sources of equity capital, with most of the funds going into wholesale and retail trade, manufacturing, and real estate.
From January to July 2025, total FDI inflows reached $4.7 billion, down 20% from $5.9 billion in the same period last year, BSP data showed.
