Net foreign direct investments (FDI) in the Philippines fell considerably in the first quarter of 2026, totaling $1.72 billion, a 17 percent decrease from the $2.07 billion recorded during the same period last year.
In March alone, net FDI inflows slid to $611 million, down 4.23 percent from February's $638 million, but still showing a robust 26.1 percent increase compared to March 2025's $485 million.
FDI can be uneven from month to month, so a few delayed or postponed projects can have a noticeable impact on the data.
Robert Dan Roces, Economist, SM Investment Corp.
Robert Dan Roces, an economist at SM Investment Corp., emphasized that the decline does not necessarily indicate a loss of confidence in the Philippine market. Rather, it reflects a cautious stance by investors due to global uncertainties.
- Nonresidents' net investments in debt instruments fell to $368 million in March.
- Reinvestment of earnings increased to $78 million.
- Equity capital placements rose to $166 million.
Despite the overall downturn, certain components showed improvement. Reinvestment of earnings rose from $61 million last year, and equity capital placements increased from $101 million. However, net investments in debt instruments decreased by 22.7 percent to $1.17 billion.
The data indicates that the majority of equity capital placements came from Japan, the United States, and Singapore, predominantly directed towards the manufacturing, financial and insurance, and real estate sectors.
Looking ahead, the Bangko Sentral ng Pilipinas (BSP) maintains a target for net FDI to reach $7.5 billion this year and in 2027, despite the challenges.
It is important to note that the BSP's FDI figures are distinct from those published by other government agencies, as they represent actual investments rather than mere commitments.