Net foreign direct investment (FDI) in the Philippines plunged by 64.7% year-on-year to USD 210 million in May 2026, the lowest monthly level in more than a decade. The sharp decline was mainly due to reduced net investments in debt instruments and lower reinvestment of earnings, which more than offset the increase in net equity capital investments excluding reinvested earnings.
Over the first five months of 2026, net FDI inflows contracted by 33.4% year-on-year to USD 2.18 billion. Net investments in debt instruments dropped by 49.5% to USD 1.25 billion, while reinvested earnings fell by 9.7% to USD 383 million. These declines outweighed a 17.4% rise in equity capital investments, which reached USD 925 million. Equity capital placements came largely from Japan, the United States, and Singapore, and were channeled mainly into the manufacturing, financial and insurance, and real estate sectors.
