Foreign direct investment (FDI) net inflows into the Philippines fell 26.5 percent to nearly $2 billion in the first four months of 2026, as declines in debt instrument investments and reinvested earnings outweighed stronger equity capital placements.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed net FDI inflows reached $1.968 billion from January to April, down from $2.675 billion in the same period in 2025.
The decline reflected a sharp 40.4 percent drop in net investments in debt instruments to $1.218 billion from $2.042 billion a year earlier. Reinvestment of earnings also fell 14 percent to $285 million from $332 million.
These declines more than offset a 53.7 percent surge in net equity capital investments, excluding reinvestment of earnings, to $464 million from $302 million.
Gross equity capital placements increased slightly to $526 million from $509 million, while withdrawals plunged to $61 million from $207 million.
The BSP said equity capital placements during the first four months came primarily from Japan, the United States, and Singapore. Investors largely channeled the funds into the manufacturing, financial, insurance, and real estate industries.
In April alone, net FDI inflows plunged 58.8 percent to $250 million from $607 million in the same month last year.
The sharp contraction came mainly as net investments in debt instruments sank 91.7 percent to $44 million from $522 million. The BSP said these debt instruments consist mainly of intercompany borrowing and lending between foreign direct investors and their subsidiaries or affiliates in the Philippines.
Reinvestment of earnings edged down 1.9 percent to $80 million from $81 million in April 2025.
The declines outweighed a substantial increase in net equity capital investments, excluding reinvested earnings, which surged to $127 million in April from just $4 million a year earlier.
Equity capital placements rose 21.4 percent to $136 million from $112 million, while withdrawals plunged 91.7 percent to $9 million from $108 million.
The April figures also marked a steep month-on-month slowdown. Net FDI inflows fell 59.1 percent from $611 million in March, when net equity capital investments reached $166 million, reinvestment of earnings stood at $78 million, and net debt instruments totaled $368 million.
For the January-April period, net FDI inflows comprised $1.218 billion in debt instruments, $464 million in net equity capital other than reinvested earnings, and $285 million in reinvestment of earnings.
The latest four-month total was also significantly below the full-year FDI figures recorded in recent years. Net inflows stood at $7.791 billion in 2025, down from $9.398 billion in 2024 and $8.925 billion in 2023.
The BSP defines FDI as investment by a nonresident direct investor in a resident enterprise in which the investor owns at least 10 percent of the company’s equity capital. It also includes investments by a nonresident subsidiary or associate in its resident direct investor.
FDI may take the form of equity capital, reinvestment of earnings, and borrowings.
The central bank said its FDI statistics cover actual investment inflows and differ from approved foreign investment data published by other government agencies, which represent investment commitments that may not necessarily be fully realized within a given period.
The BSP also presents its FDI data on a net basis, meaning equity capital placements are reported after withdrawals. PR
