FOREIGN direct investment (FDI) net inflows fell to US$3.4 billion in January to June 2026, lower than the amount recorded in the same period last year, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP said the decline reflected lower foreign net investments in debt instruments, which indicated reduced intercompany borrowings, as well as lower reinvestment of earnings.
Despite the overall decline, equity capital investments increased in the first half of the year compared with the same period in 2025, the BSP said.
Capital placements came mainly from Japan, the United States, and Singapore, with investors directing funds largely to the manufacturing, financial and insurance, and real estate industries.
The BSP said FDI statistics cover actual investment inflows and follow the Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6). Under the standard, FDI includes investments by a nonresident direct investor in a resident enterprise where the foreign investor holds at least 10 percent of the equity capital.
FDI may take the form of equity capital, reinvested earnings, and borrowings.
The BSP also clarified that its FDI figures differ from the foreign investment data released by the Philippine Statistics Authority (PSA).
While BSP data reflect actual net investment inflows, PSA figures sourced from investment promotion agencies represent approved investment commitments, which may not be fully realized during a given period.
The BSP also calculates FDI in net terms, accounting for equity capital withdrawals, while PSA foreign investment data do not account for such withdrawals.
The latest figures highlight continued foreign investor interest in key Philippine industries despite the slowdown in overall FDI inflows during the first half of the year. PR
