The Central Bank of the Philippines published foreign direct investment (FDI) data showing net inflows of USD 498 million in March 2025, down 27.8% from USD 689 million in March 2024, with declines across all major FDI components. For the first quarter of 2025, net inflows fell 41.1% to USD 1.8 billion from USD 3.0 billion in Q1 2024. The March year-on-year decline reflected lower nonresidents’ net investments in debt instruments, which dropped 31.6% to USD 329 million (from USD 481 million), alongside weaker net equity capital inflows (other than reinvestment of earnings), down 27.4% to USD 102 million (from USD 141 million), and a slight decrease in reinvested earnings to USD 66 million (from USD 67 million). Equity capital placements were sourced mainly from Singapore, Japan, the United States, South Korea, and Malaysia, and were directed largely to real estate, manufacturing, financial and insurance, and administrative and support services. The central bank noted its FDI statistics follow the BPM6 framework, apply a 10% equity ownership threshold, and are presented on a net basis, differing from approved foreign investment figures published by the Philippine Statistics Authority.
Central Bank of the Philippines 2025-06-10
Central Bank of the Philippines reports March 2025 FDI net inflows fell 27.8% to USD 498 million
The Central Bank of the Philippines reported a 27.8% year-on-year decline in foreign direct investment (FDI) net inflows to USD 498 million in March 2025, with all major components decreasing. For Q1 2025, net inflows fell 41.1% to USD 1.8 billion compared to Q1 2024. The decline was driven by reduced nonresidents’ net investments in debt instruments and weaker net equity capital inflows, with equity capital mainly from Singapore, Japan, the U.S., South Korea, and Malaysia.