FDI inflows hit 2-month low   

Foreign direct investment (FDI) flowing into the Philippines eased to its lowest level in two months in March, though the central bank viewed the outcome as evidence that investor confidence remained intact even as the conflict in the Middle East weighed on the global economic outlook.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed inflows exceeded outflows by $611 million during the month, the weakest net gain since January 2026’s $469 million.

Still, the figure was 26.1-percent higher than a year earlier.

In the first quarter of the year, net FDI inflows totaled $1.7 billion, down 17 percent from the same period last year. The central bank expects net inflows to reach $7.5 billion by the end of 2026.

“The softer FDI numbers in March and in first quarter 2026 suggest that investors have become more cautious amid global uncertainty, rather than signaling a sharp deterioration in sentiment toward the Philippines,” Robert Dan Roces, group economist at SM Investments, said.

“FDI can be uneven from month to month, so a few delayed or postponed projects can have a noticeable impact on the data,” Roces added.

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Unlike foreign portfolio investments, which can vanish at the first sign of trouble, FDI tends to represent longer-term commitments that create jobs and support industrial growth.

That said, the government has been working both to attract new investment and retain those already in the country.

Dissecting the BSP’s report, equity capital placements, a measure of new FDIs, reached $186 million in March, while investments that headed for the exit stood at $20 million. This yielded a net equity capital inflow of $166 million, up 62.1 percent.