Foreign direct investment (FDI) net inflows into the Philippines fell 23.8 percent to $3.42 billion in the first half of 2026 from $4.49 billion a year earlier, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

The decline came as equity capital investments, excluding reinvested earnings, dropped 74.6 percent to $307 million from $1.21 billion. Gross equity placements fell 49.3 percent to $746 million, while withdrawals rose 67.2 percent to $439 million.

Japan accounted for 43 percent of equity investments, followed by the United States at 20 percent, Singapore at 12 percent and South Korea at 8 percent. 

Manufacturing recipient of half of total investments

Manufacturing received half of the investments, followed by real estate at 19 percent and financial and insurance activities at 10 percent.

Reinvested earnings increased 11.6 percent to $573 million, while net investments in debt instruments declined 8.2 percent to $2.54 billion.

For June alone, FDI net inflows fell 17.8 percent to $376 million from $457 million a year earlier, marking the lowest monthly level since December. The BSP said the decline reflected a shift in equity capital investments, excluding reinvested earnings, to a net outflow.

The central bank expects net FDI inflows to reach $7.5 billion this year.