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July 13, 2024

Investor confidence boosts Philippine FDIs to $3.5 billion in January-April

The Philippines attracted more foreign direct investments (FDI) in the first four months of 2024, defying global headwinds.

Net inflows rose 18.7% to $3.525 billion compared to the same period last year, according to Bangko Sentral ng Pilipinas (BSP) data.

“This is a vote of confidence in the Philippine economy’s resilience,” said the BSP on Wednesday.

However, April’s figures showed a temporary pause. Net inflows dipped 36.9% to $556 million compared to April 2023.

The decline stemmed from a drop in both debt instruments and equity capital investments excluding reinvested earnings.

For the four-month period, the Netherlands emerged as the biggest source of equity capital, injecting 63% of the total.

The US and Japan followed at a distance. These investments primarily flowed into the financial sector (67%), followed by manufacturing (18%) and real estate (7%).

The BSP remains optimistic, forecasting net FDI to reach $9 billion in both 2024 and 2025.

This follows $8.9 billion in 2023, down from $9.4 billion a year earlier.

The central bank attributes the FDI growth to ongoing reforms creating a more business-friendly environment.