Net foreign direct investment (FDI) in the Philippines fell by 44.1% year-on-year to USD 689 million in July 2026. The sharp decline was mainly due to weaker net inflows of equity capital (excluding reinvestment of earnings) and net debt instruments, which dropped by 55.5% and 49.1%, respectively. These declines more than offset the 39.9% increase in reinvestment of earnings.
For the first seven months of 2026, net FDI inflows decreased by 23.9% to USD 4.07 billion. This contraction reflected lower net inflows across all major FDI components: equity capital investments excluding reinvestment of earnings (-6.9%), reinvestment of earnings (-14.2%), and net debt instruments (-30.6%).
Equity capital placements came mainly from Japan, the United States, and Singapore, with funds largely directed toward the manufacturing, financial and insurance, and real estate sectors.
