Investor sentiment wanes as Philippines records decline in net FDI

The country’s net foreign direct investments (FDI) witnessed a decline of 19.6 percent to $2.042 billion as of end-March, reflecting the cautiousness among investors amid uncertain global economic conditions.

According to the Bangko Sentral ng Pilipinas, the decrease in net FDI was observed across all components, including equity capital, reinvestment of earnings, and borrowings, indicating a broader slowdown in foreign investment activity in the first quarter.

In March alone, net FDI inflows experienced a significant drop of 30.7 percent, amounting to $548 million, due to investor concerns over subdued global growth prospects.

Singapore, Japan, and the United States emerged as the primary sources of FDI during the first three months of the year, with manufacturing, information and communication, and real estate sectors attracting the majority of investments, accounting for 27 percent, 26 percent, and 23 percent, respectively.