MANILA, Philippines — Net foreign direct investment (FDI) inflows into the Philippines rose to a three-month high of $590 million in February 2026, according to the latest data released by the Bangko Sentral ng Pilipinas (BSP) on Monday, May 11, 2026.
The figure represents a 33.2% increase from the $443 million recorded in January, marking the strongest monthly performance since November 2025. However, the February total remains 31% lower than the $855 million logged in the same month last year, reflecting a broader trend of global investor caution.
The growth in February was driven primarily by intercompany borrowings and a steady rise in reinvested earnings.
- Debt Instruments: Net investments in debt instruments (mostly borrowings between multinational companies and their local affiliates) rose to $414 million, up from $320 million in January.
- Equity Capital: Net investments in equity and investment fund shares reached $177 million, a slight increase from $175 million in February 2025.
- Reinvestment of Earnings: This segment grew to $75 million, up from $67 million in the previous year, signaling that existing foreign firms continue to see long-term value in their Philippine operations.
The BSP identified the United States as the leading source of equity capital placements for the month. These investments were largely channeled into two key sectors:
- Financial and Insurance Activities
- Manufacturing
Despite the month-on-month recovery, the first two months of the year show a contraction compared to 2025’s high base.
| Period | Net FDI Inflow | Year-on-Year Change |
| Jan–Feb 2025 | $1.58 billion | — |
| Jan–Feb 2026 | $1.03 billion | -34.8% |
Analysts suggest that the year-on-year decline is “largely a story of global caution” rather than a localized loss of confidence.
- Headwinds: Higher global interest rates, geopolitical tensions in the Middle East, and inflationary pressures have made international investors more selective with their deal timing.
- 2026 Target: The BSP maintains its projection that net FDI inflows will reach $7.5 billion by the end of 2026. While lower than the $7.8 billion achieved in 2025, officials believe the “structural drivers” of the Philippine economy—such as renewable energy projects and the “CREATE MORE” tax incentives—will sustain interest.
“The month-on-month rebound tells us interest is still there, just uneven. Geopolitical risks tend to delay, not cancel, long-term investments in the country.” — Jonathan Ravelas, Senior Adviser at Reyes Tacandong & Co.
