Net foreign direct investments (FDI) in the Philippines shrank by 23.8 percent year-on-year in the first half of 2025, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP said net inflow of FDIs also fell 17.8 percent from $457 million in June 2024 to $376 million in June 2025.
“The US tariffs hurt—especially our manufacturing sector—but it’s also about weak global trade and our own policy gaps,” said Jonathan Ravelas, a senior adviser at Reyes Tacandong & Co.
He said the sharp drop in FDIs serves as a “wake-up call” for the country.
“Investors are watching how we respond. If we don’t fix logistics, clarify rules and build confidence, this could turn into a trend. But there’s still time to turn things around,” said Ravelas.
The BSP the slowdown in FDI net inflow in June reflected the shift in nonresidents’ net investments in equity capital (other than reinvestment of earnings), from $85 million inflows to $57 million outflows.
The reduction was partly offset by a 36.7 percent increase in reinvestment of earnings from $94 million to $128 million. Nonresidents’ net investments in debt instruments grew by 9.3 percent, from $279 million to $305 million.
Equity capital placements in June 2025 came mostly from Japan, the United States and South Korea. Industries that received most of these investments were manufacturing, real estate and wholesale and retail trade.
Data showed that in the first half of 2025, FDI net inflow decreased by 23.8 percent from $4.5 billion posted to $3.4 billion.
