This past April, the net inflows of foreign direct investment (FDI) into the Philippines reached only $250 million which counts as a 10-year low and a 59% fall compared with March 2026, according to a news report by BusinessWorld.
To put things in perspective, posted below is an excerpt from the BusinessWorld news report. Some parts in boldface…
Net inflows of foreign direct investments (FDI) in the Philippines plunged to a near 10-year low of $250 million in April, as heightened global uncertainty dented investor sentiment, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
Based on central bank data released on Friday, FDI net inflows declined by 58.8% to $250 million in April from $607 million in the same month last year.
April saw the lowest monthly level seen since the $244 million in June 2016, and the steepest year on year drop since the 76.1% in December 2022.
Month on month, FDI net inflows slumped by 59.1% from the $611 million in March.
“The sharp decline in FDI net inflows to $250 million in April likely reflects a combination of weaker intercompany borrowings, slower reinvestment activity, and continued investor caution amid an uncertain global environment,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said via Viber.
The latest FDI level was dragged by the 91.7% drop in net investments in debt instruments to $44 million in April from $522 million a year ago.
Reinvestment of earnings likewise slipped by 1.9% to $80 million from $81 million in April 2025.
Meanwhile, investments in equity and investment fund shares more than doubled (143.5%) to P207 million in April from $85 million the prior year.
Foreign net investments in equity capital other than reinvestment of earnings also ballooned (3,041%) annually to $127 million from $4 million previously.
Equity placements jumped by 21.4% to $136 million from $112 million a year earlier, while withdrawals plunged by 91.7% to $9 million from $108 million.
For Mr. Asuncion, the softer FDI inflows in April likely came as firms and investors deferred investments amid highly uncertain global conditions compounded by weak domestic growth.
“At the same time, heightened global uncertainty stemming from trade tensions, lingering geopolitical risks, and episodes of financial market volatility may have prompted multinational firms to defer expansion plans and adopt a more conservative stance toward capital deployment,” he said.
“Domestically, relatively subdued economic growth in the early part of the year may have also tempered investment decisions,” he added.
Let me end this post by asking you readers: What is your reaction to this recent development? Are you convinced that foreign investors have weak trust in the Philippines no matter what the current administration is doing? Do you think weak economic growth in the Philippines will continue until the end of 2028?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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