Net foreign direct investment (FDI) into the Philippines reached US$610 million in April, up 7.1 percent year-on-year, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP). The increase, driven by stronger inflows in intercompany debt instruments and reinvested earnings, is seen as an indicator of sustained investor confidence in the country’s economic fundamentals.
The BSP said net investments in debt instruments rose sharply by 24.3 percent to US$522 million while reinvested earnings increased modestly by 3.3 percent to US$84 million. However, equity capital placements plunged by 94.1 percent to US$4 million, despite contributions from key sources such as Japan, the U.S., Singapore, South Korea, and Taiwan. Investment continued to flow primarily into manufacturing, financial and insurance, and real estate sectors.
From January to April 2025, cumulative net FDI inflows stood at US$2.4 billion, down 33.4 percent from US$3.6 billion in the same period last year. Despite the year-to-date slowdown, the BSP views the positive monthly inflow as a sign that foreign investors remain engaged, particularly through reinvestments and intercompany financing, reinforcing the role of FDI flows as a barometer of confidence in the Philippine economy.
