FDI inflows plunge to $250 million in April

MANILA, Philippines — Foreign direct investment (FDI) net inflows slumped to their lowest level in almost a decade in April, the Bangko Sentral ng Pilipinas (BSP) said, as global uncertainties kept investors in a cautious stance.

Preliminary data from the BSP showed that FDI net inflows plunged by 58.8 percent to $250 million in April from $607 million in the same month last year.

The April tally marks the lowest since the $244 million recorded in June 2016. The figure was also lower than the $611 million recorded in March.

UnionBank chief economist Ruben Carlo Asuncion said the weak outturn in April is “clearly a weak print” and showed the “cautious stance of foreign investors amid lingering global uncertainties.”

“While we still need the detailed breakdown from BSP, the sharp decline likely stemmed from softer intercompany lending, weaker reinvestment activity and possibly the postponement of fresh equity investments,” he said.

“The timing is not entirely surprising, considering that the global investment environment remains challenged by trade-related uncertainties, geopolitical tensions and heightened market volatility, all of which tend to delay long-term investment decisions,” Asuncion said.

He noted that the softer pace of economic activity in the early part of 2026 could have also tempered expansion plans among foreign firms already operating in the country.

However, he said this would not mean that the April figure is a sign that the Philippines is becoming a less attractive investment destination.

Nonresidents’ net investments in debt instruments plummeted by 91.7 percent to $44 million in April from $522 million in the same month a year ago.

Net investments in debt instruments consist mainly of intercompany borrowing and lending between foreign direct investors and their subsidiaries or affiliates in the Philippines.

Reinvestment of earnings also inched down by 1.9 percent to $80 million in April from $81 million a year earlier.

In contrast, nonresidents’ net investments in equity capital other than reinvestment of earnings grew to $127 million in April from $4 million a year ago.

Equity capital placements grew by 21.4 percent to $136 million in April from $112 million, while withdrawals plunged by 91.7 percent to $9 million from $108 million.

The BSP’s FDI data cover actual investment inflows, unlike the approved foreign investments reported by other government agencies, which represent investment commitments that may not be fully realized.

In the first four months, FDI net inflows also dropped by 26.5 percent to $1.97 billion from $2.68 billion in the same period last year.

“The decline was driven by lower foreign net investments in debt instruments and reinvestment of earnings, which more than offset the increase in foreign net investments in equity capital (other than reinvestment of earnings),” the BSP said in a statement.

Nonresidents’ net investment in debt instruments dropped by 40.3 percent to $1.22 billion from $2.04 billion.

Reinvestment of earnings declined by 14 percent to $285 million from $332 million.

This offset the 53.7-percent jump in net equity capital investments, which rose to $464 million in the end-April period from $302 million a year ago.

In the January to April period, the BSP said equity capital placements were sourced primarily from Japan, the United States and Singapore.

These were channeled largely into the manufacturing, financial and insurance and real estate industries.

Asuncion said the four-month figures suggest that foreign investors are becoming more selective rather than abandoning the market altogether.

Despite this, he said the country’s underlying investment story remains intact, backed by its large consumer base, improving infrastructure, ongoing reforms and favorable demographics.

“Moving forward, a sustained recovery in FDI will likely depend on stronger domestic growth, greater policy certainty and a more stable global environment that encourages firms to resume long-term capital deployment,” Asuncion said.