Foreign direct investment (FDI) inflows into the Philippines surged to an eight-month high in October, reflecting strong foreign interest despite global economic headwinds, according to data from the Bangko Sentral ng Pilipinas (BSP).
BSP reported on Friday that net FDI inflows hit $1 billion in October 2024, the highest level since February 2024 when inflows totaled $1.3 billion. The figure represented a 50.2% increase compared to $681 million in the same month last year.
The growth was largely driven by a 60.7% jump in non-residents’ investments in debt instruments, to $839 million in October, up from $522 million a year ago. Investments in equity capital, excluding reinvested earnings, saw a 34.1% hike, reaching $100 million.
Despite the strong growth, reinvested earnings declined by 0.9% to $83 million.
FDI flows are a key indicator of foreign investor confidence and include capital investments from non-residents in domestic enterprises where they hold at least a 10% equity stake, as well as investments made by foreign subsidiaries in their Philippine-based affiliates.
Top sources of FDI for October included Japan, the United States, and Singapore, with investments predominantly directed toward manufacturing, real estate, and construction sectors.
For the January-to-October period, total FDI inflows rose 8.2% to $7.7 billion. The bulk of equity placements came from the United Kingdom, Japan, the United States, and Singapore, targeting manufacturing, real estate, and wholesale and retail trade industries.
