SHORT-TERM foreign investments plunged in July and reversed to a year-to-date net outflow amid heightened global uncertainty, latest Bangko Sentral ng Pilipinas (BSP) data showed.
Portfolio investments — also known as “hot money” because these can be quickly moved elsewhere to maximize profits from interest rates — posted a net inflow of $66.47 million during the month, plunging from the year-earlier $1.73 billion and the $170.12 million seen in June.
This led to a net outflow of $3.94 billion for the first seven months of 2026, a turnabout from the net inflow of $2.25 billion seen in January-July 2025.
The significant slowdown suggests that “foreign investors remained selectively constructive on Philippine assets despite a more challenging global environment,” Union Bank of the Philippines chief economist Ruben Carlo Asuncion said.
“The continued inflow likely reflected pockets of opportunity in local financial markets, supported by still-resilient domestic economic activity and investor search for returns, even as concerns over global growth, geopolitical tensions, elevated oil prices, and inflation risks tempered risk appetite,” he added.
Gross inflows for July alone totaled $2.37 billion, down from the $2.94 billion and $2.47 billion recorded a month and a year earlier.
Outflows, meanwhile, rose to $2.3 billion from $1.73 billion in July 2025 but were lower than June’s $2.77 billion.
Gross inflows for the seven-month period rose to $15.61 billion from $14.52 billion in January–July 2025, while the gross outflows of $19.55 billion were also higher than the $12.27 billion recorded in the same period last year.
“Looking ahead, foreign portfolio flows may continue to swing between inflows and outflows depending on global market developments and investor sentiment,” Asuncion said.
“While the Philippines remains on investors’ radar, flows are likely to stay measured and selective as markets navigate heightened uncertainty and a more complex interest rate and inflation environment,” he added.
