Net foreign direct investment (FDI) inflows to the Philippines fell 17 percent in the first quarter of 2026, the Bangko Sentral ng Pilipinas said.
Data from the BSP showed that net FDI inflows declined to $1.717 billion from January to March, down from $2.068 billion in the same period last year.
The central bank said the drop was mainly due to lower net investments in debt instruments, which fell to $1.175 billion from $1.52 billion a year earlier.
The decline offset the increase in equity capital placements, which rose to $337 million from $298 million.
Reinvested earnings also slipped to $206 million from $251 million during the period.
The BSP said the bulk of equity capital placements came from Japan, the United States, and Singapore. These were channeled mainly into manufacturing, financial and insurance, and real estate industries.
Despite the overall decline, the BSP said equity capital placements and reinvested earnings remained broadly steady, indicating continued investor interest in the country.
The first-quarter drop followed a weaker full-year performance in 2025, when net FDI inflows declined to $7.79 billion from $9.4 billion in 2024.
The BSP said its FDI data follow the Balance of Payments and International Investment Position Manual, Sixth Edition. Under this standard, FDI covers investments by a nonresident direct investor in a resident enterprise where foreign equity ownership is at least 10 percent.
The BSP’s figures differ from investment data released by the Philippine Statistics Authority, which are based on investment commitments reported by investment promotion agencies.
Unlike PSA data, the BSP’s FDI figures are reported on a net basis, with withdrawals deducted from gross equity capital placements.