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4. FOREIGN DIRECT INVESTMENT FALLS 17.8% IN THE FIRST HALF OF 2026
Foreign direct investment entering the Philippines reached a net $3.382 billion from January through June, down 17.8 percent from $4.116 billion during the same period in 2025, according to the Bangko Sentral ng Pilipinas. June recorded $447 million in net inflows. That was higher than the $331 million recorded in June last year but lower than May’s $638 million.
Foreign direct investment covers longer-term business commitments, including new equity, profits reinvested in Philippine operations, and loans between related companies. BSP said the half-year decline was driven by lower intercompany borrowing and lower reinvested earnings. Net equity investment for the first six months increased, with much of the money coming from Japan, the United States and Singapore and going into manufacturing, finance and insurance, and real estate.
A sustained decline can mean less capital for business expansion, factories and future jobs. But this release does not show every form of foreign investment, and the stronger June figure compared with last year means the direction is not uniformly downward. The useful question is whether the improvement continues and whether the money reaches industries that create jobs and productive capacity.
WHAT TO WATCH
The July figures, movement in reinvested earnings and company loans, and whether manufacturing receives a larger and sustained share of actual investment.