Net foreign direct investment (FDI) in the Philippines fell by 39.2% year-on-year to USD 0.4 billion in January 2026, the lowest level since September 2026. The decline points to the impact of heightened geopolitical risks on investor sentiment. Net inflows decreased across all major FDI components, including reinvestment of earnings (-56.8%), debt instruments (-38.4%), and equity capital (-19.9%).
Equity capital placements during the month came primarily from Japan, the United States, and South Korea, with investments largely channeled into the manufacturing, real estate, and wholesale and retail trade sectors. For full-year 2025, net FDI inflows totaled USD 7.8 billion, a 17.1% decrease from the USD 9.4 billion recorded in 2024.