NET foreign direct investments (FDIs) fell to a near 10-year of $250 million in April, data from the Bangko Sentral ng Pilipinas (BSP) showed on Friday, plunging by approximately 59 percent from $607 million a year earlier and the $611 million seen in March.
It was the lowest since June 2016’s $244 million, and the 58.8-percent year-on-year plunge was also the sharpest since net FDI fell by 76.1 percent in December 2022.
Year-to-date, net FDI also declined by 26.5 percent to $1.968 billion from $2.675 billion in January-April 2025. It was the lowest since the $1.952 billion seen in the first four months of 2020.
“The decline was driven by lower foreign investments in debt instruments and reinvestment of earnings, which more than offset the increase in foreign net investments in equity capital (other than from reinvestment of earnings),” the BSP said in a statement.
Nonresidents’ investments in equity capital surged by 3,040.6 percent to $127 million in April from $4 million a year earlier.
Reinvestment of earnings, on the other hand, fell by 1.9 percent to $80 million from $81 million and investments in debt instruments plunged by 91.7 percent to $44 million from $522 million.
For the four-month period, net investments in equity capital were up 53.7 percent at $464 million from $302 million but reinvestment of earnings and net investments in debt fell by 14.0 percent and 40.3 percent, respectively, to $285 million and $1.22 trillion from $332 million and $2.04 trillion.
The bulk of equity capital placements for January-April came from Japan, the United States and Singapore, the BSP said. These were mostly directed toward the manufacturing, financial and insurance, and real estate industries.
BSP data, which cover actual investment inflows, differ from results released by other government sources such as those from the Philippine Statistics Authority and various investment promotion agencies that count investment pledges that may not materialize.
Commenting on the latest FDI data, UnionBank of the Philippines chief economist Carlo Asuncion said the weak April turnout reflected investor cautiousness.
He said the timing was “not entirely surprising” as trade-related uncertainties, geopolitical tensions and increased market volatility continued to pose challenges to the global investment environment.
Asuncion also said that markedly slower economic growth might have also dampened the expansion plans of foreign companies in the country, but added “I would not interpret the April figure as a sign that the Philippines is becoming a less attractive investment destination.”
The timing of a few big transactions can also have a big impact on FDI data, he said, but added that the year-to-date trend merited closer observation as it indicated that foreign investors are becoming more selective.
“The country’s underlying investment story remains intact, supported by its large consumer base, improving infrastructure, ongoing reforms, and favorable demographics,” Asuncion said.
“Moving forward, a sustained recovery in FDI will likely depend on stronger domestic growth, greater policy certainty, and a more stable global environment that encourages firms to resume long-term capital deployment.”
Rizal Commercial Banking Corporation chief economist Michael Ricafort also said that the FDI results were mostly due to the effects of the war in the Middle East, which resulted in higher inflation and borrowing costs, and slower economic growth.
He also cited political noise since 2025 as another possible reason.
