Foreign investments in the Philippines fall 26.5% in first four months of 2026

BSP says lower foreign direct investment inflows could weigh on business expansion despite stronger equity investments.

Foreign investors are putting less money into the Philippine economy this year, a trend that could slow business expansion, hiring, and new projects if it continues.

The Bangko Sentral ng Pilipinas (BSP) reported that foreign direct investments (FDI) fell to $250 million in April, down 58.8% from $607 million a year earlier and nearly 59% lower than March’s $611 million.

That brought total FDI for the first four months of 2026 to $1.97 billion, a 26.5% drop from $2.68 billion in the same period last year.

The BSP said the decline came mainly from weaker investments in debt instruments and lower reinvestment of earnings, even as net equity investments climbed sharply to $127 million from just $4 million a year ago.

Japan, the United States, and Singapore remained the country’s biggest sources of equity investments, with funds flowing mostly into manufacturing, financial and insurance services, and real estate.

Foreign investments often help businesses expand, create jobs, and finance new facilities, making them an important source of long-term economic growth.

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