The Philippines recorded a five-month high in foreign direct investment (FDI) net inflows in July 2024, reaching USD 820 million, according to data released by the Bangko Sentral ng Pilipinas (BSP). This marks a 5.5% increase from the USD 778 million in FDI inflows recorded in July 2023 and represents the highest monthly inflow since February, when investments hit USD 1.3 billion.
The BSP attributed the growth to stronger inflows across all FDI components, including equity capital, reinvestment of earnings, and borrowings. In particular, non-residents’ net investments in debt instruments saw a 2.7% rise, reaching USD 610 million compared to USD 594 million in July last year. Reinvestments of earnings from non-residents also increased by 12.8%, amounting to USD 135 million, while net equity capital investments (excluding reinvestment of earnings) rose by 16.8% to USD 76 million from USD 65 million.
The top sources of FDI during the month included Japan, the United States, and Singapore. Investments were largely funneled into the manufacturing and real estate sectors, reflecting the continued interest in these critical industries.
For the first seven months of 2024, FDI net inflows amounted to USD 5.3 billion, reflecting a 7.5% increase from the USD 4.9 billion in the same period in 2023. The BSP noted that the surge in inflows was primarily driven by strong investments from key international partners such as the United Kingdom, Japan, and the United States. Similar to July’s figures, these funds were channeled into manufacturing and real estate—industries that remain vital to the country’s economic growth.
FDIs, which include equity capital, reinvestment of earnings, and intercompany borrowings, play a pivotal role in supporting the Philippines’ economic development. These investments not only bolster capital inflows but also generate employment, foster technology transfer, and enhance productivity in key sectors.
The BSP remains optimistic about the positive trend in FDI inflows, noting that the steady increase underscores the Philippines’ attractiveness as an investment destination despite global economic uncertainties. As the country continues to recover from the pandemic and navigate geopolitical shifts, the sustained growth in foreign investments is a promising indicator of investor confidence in the country’s long-term prospects.
With the government actively promoting key industries and maintaining macroeconomic stability, the Philippines is positioning itself to attract more foreign investments, helping to drive economic expansion and create more opportunities for its population.
