Debt Repayments Drag Down FDI Inflows in December – BSP

Manila, Philippines – Foreign direct investment (FDI) inflows into the Philippines dropped significantly in December 2024, as local firms prioritized debt repayments to foreign investors, according to data from the Bangko Sentral ng Pilipinas (BSP).

FDI net inflows for December 2024 stood at $110 million, marking a sharp decline from $922 million in November 2024 and an 85.2% drop year-on-year from $743 million in December 2023.

Key Reasons for Decline

🔹 Increased debt repayments – Net foreign investments in debt instruments shifted to net outflows of $19 million, compared to a $618 million net inflow in December 2023.
🔹 Lower reinvestment of earnings – Down 14.7% to $80 million, from $94 million in December 2023.

However, foreigners’ net equity investments (excluding reinvested earnings) rose by 58%, reaching $49 million (up from $31 million in December 2023).

Top Foreign Investors & Industries

FDI placements came primarily from Singapore, Japan, the United States, and South Korea, with investments focused on:
✅ Information and Communication
✅ Manufacturing
✅ Financial & Insurance Services
✅ Construction
✅ Real Estate

Despite the December slowdown, total FDI inflows for 2024 reached $8.93 billion, reflecting a modest 0.1% increase from $8.925 billion in 2023.