Foreign investments registered with the Bangko Sentral ng Pilipinas (BSP) through authorized agent banks (AABs) took the high path in 2024, with net inflows totaling USD2.1 billion, a sharp turnaround from the previous year’s outflows. This marked a significant 39.2 percent increase from 2023, which saw USD12.9 billion in investments.
The surge in foreign investments was largely driven by strong demand for peso-denominated government securities (peso GS), which accounted for 54.2 percent of the inflows. The remaining investments were predominantly directed toward PSE-listed securities, with key sectors attracting interest including banking, property, transportation, and food and beverage.
The growth in foreign inflows comes despite a notable rise in outflows, which amounted to USD15.8 billion—up 20.5 percent from the previous year. A significant portion of these outflows (96 percent) was attributed to capital repatriation, with the US being the largest recipient.
Notably, December 2024 saw net outflows of USD487.4 million, reversing the positive trend of the previous month. However, the overall 2024 performance remains a key indicator of investor confidence in the Philippine economy, underpinned by the growing interest in peso GS, which saw inflows increase by 284.2 percent.
Top investor countries included the UK, the US, Singapore, Luxembourg, and Hong Kong, collectively contributing to over 86 percent of total foreign investments for the year.
This 2024 performance highlights the economic importance of foreign capital inflows for the Philippine economy, particularly in bolstering government financing through Peso GS, as well as the attractiveness of the country’s financial markets to international investors.
