By the staff
Foreign direct investments (FDIs) in the Philippines slipped to $320 million in September, signaling continued investor caution.
“Japan was the top source of FDIs, while manufacturing was the biggest recipient of FDIs during the month,” the Bangko Sentral ng Pilipinas said.
The inflow was down from $514 million in August and $432 million a year ago. Year-to-date FDIs totaled $5.54 billion, below last year’s $7.1 billion, representing 1.6% of GDP in the first three quarters.
RCBC chief economist Michael Ricafort attributed the decline to weather disruptions that reduced working days and concerns over corruption after anomalous flood control programs were uncovered.
Other headwinds included U.S. tariffs, slower global growth, and broader investment trends. Offsetting some of these factors, Ricafort said, were interest rate cuts by the BSP and the U.S. Federal Reserve, which “reduced borrowing costs/financing costs that, in turn, increased demand for loans/credit that finance investments (new and expansion projects), capital expenditures and operating expenditures of many businesses/industries.”
