FDI inflows up 7.1% in April on stronger debt investments

Net foreign direct investment (FDI) inflows to the Philippines rose by 7.1% year-on-year in April 2025, reaching USD610 million from USD570 million a year earlier, the Bangko Sentral ng Pilipinas (BSP) reported Thursday.

The increase was driven primarily by higher investments in debt instruments by non-resident investors, which surged by 24.3% to USD522 million from USD420 million in April 2024.

Reinvested earnings also contributed to the growth, inching up by 3.3% from USD82 million to USD84 million.

However, the BSP noted a sharp 94.1% decline in net equity capital investments (excluding reinvested earnings), which fell to just USD4 million for the month.

Equity capital placements during the period came largely from Japan, the United States, Singapore, South Korea, and Taiwan, and were directed into the manufacturing, financial and insurance, and real estate sectors.

FDI covers cross-border investments where a non-resident investor acquires at least 10% equity in a resident enterprise, as well as investments by foreign subsidiaries or affiliates in their local counterparts—including equity, earnings reinvestment, and intercompany borrowings.

Despite the decline in equity capital inflows, the overall FDI uptick reflects continued investor confidence in Philippine industries amid an improving macroeconomic environment.