Hanoi (VNA) - Foreign direct investment (FDI) inflows to the Philippines sank 17.83% to 3.38 billion USD in the first half of 2026 from 4.12 billion USD a year ago, as foreign investors pulled back sharply on intercompany lending and reinvested earnings, the Bangko Sentral ng Pilipinas (BSP) said.
Data showed nonresidents’ investment in debt instruments dropped 25.82% to 2.06 billion USD and led the decline, while reinvestment of earnings decreased 19.36% to 829 million USD, according to the Manila Standard.
The BSP said capital placements came primarily from Japan, the US and Singapore and mainly flowed into the manufacturing, financial and insurance and real estate industries.
UnionBank of the Philippines chief economist Ruben Carlo Asuncion attributed the year-on-year increase in June to the inherent volatility of monthly investment flows, particularly in intercompany borrowings and reinvestment activity.
“Moving forward, FDI flows will likely remain sensitive to global growth prospects, trade and geopolitical developments, and broader investor sentiment, although the continued increase in equity investments provides some support for the outlook”, he said./.