PH FDI drops to 6-month low in June

Net foreign direct investment (FDI) inflows in the Philippines decreased to a six-month low of $376 million in June, a 17.8% year-on-year decline.

This downturn broke a two-month streak of increases in FDI, with June inflows being the lowest since December 2024.

The primary reason for the slowdown was a shift from net inflows to net outflows in nonresidents' investments in equity capital, excluding reinvestment of earnings.

Equity capital investments recorded $57 million in outflows in June, compared to outflows of $85 million in June 2024.

This was partly offset by reinvestment of earnings, which grew 36.7% to $128 million.

Investments primarily came from Japan (62%), the United States (16%), and South Korea (9%), channeled mainly into manufacturing, real estate, and wholesale and retail trade.

The Bangko Sentral ng Pilipinas (BSP) reported these figures, noting FDI is crucial for job creation.