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Data from the Bangko Sentral ng Pilipinas (BSP) show that net FDI inflows amounted to $494 million in August 2025, a 40.5-percent drop from the $830 million recorded in August 2024.
The big picture
On a cumulative basis, the year-to-date FDI net inflows for January to August 2025 plummeted by 22.5 percent to $5.2 billion, falling substantially from $6.7 billion posted in the same period a year earlier. This significant decrease highlights the challenging global investment environment.
Where the money's coming from
The manufacturing sector continued to be the main draw for foreign investors. This was followed by the wholesale and retail trade, and real estate industries. Equity capital placements were predominantly sourced from key Asian partners and Western allies: Japan, the United States, Singapore, and South Korea.
Component breakdown
The decline in FDI was primarily driven by a sharp reduction in net investments in debt instruments, which fell by 73.8 percent in August 2025 compared to the previous year. Similarly, equity other than reinvestment of earnings decreased by 40.5 percent.
However, reinvestment of earnings remained a positive element, posting a slight annual increase of 8.2 percent for the January-August period, indicating continued commitment from existing foreign direct investors. — Daxim L. Lucas | Ed: Corrie S. Narisma
