FDI net inflows reach $8.6B in 2024

Foreign direct investment (FDI) net inflows in the Philippines reached $8.6 billion from January to November 2024, marking a 4.4 percent increase from the $8.2 billion recorded in the same period in 2023, according to data from the Bangko Sentral ng Pilipinas (BSP).

The BSP reported that the bulk of FDI inflows came from Japan, the United Kingdom, the United States, and Singapore. These investments were primarily directed into manufacturing, real estate, and wholesale and retail trade.

FDIs include equity capital, reinvestment of earnings, and borrowings from non-resident investors who hold at least a 10 percent stake in a resident enterprise.

Despite the overall growth in the first 11 months of 2024, FDI net inflows for November alone declined by 19.8 percent year-on-year to $901 million from $1.1 billion in November 2023. The BSP attributed the drop to a 17.9 percent decrease in nonresidents’ net investments in debt instruments, which fell to $791 million. Equity capital investments also dropped by 58.9 percent to $35 million, while reinvestment of earnings remained stable at $74 million.

The central bank noted that in November 2024, most equity capital placements came from Japan, the U.S., and Singapore, with funds channeled into manufacturing, real estate, financial and insurance services, and administrative support industries.

The steady rise in FDI inflows for most of 2024 highlights continued investor confidence in the Philippine economy despite global uncertainties.