The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
grocery-2-aa
Economic Updates
Inflation Update: Prices rise even slower in May 
DOWNLOAD
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
grocery-2-aa
Economic Updates
Inflation Update: Prices rise even slower in May 
June 5, 2025 DOWNLOAD
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
May 29, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
View all Reports
BusinessWorld 3 MIN READ

FDI plunges on global recession fears

June 14, 2023By BusinessWorld
Related Articles
Gov’t makes full award of T-bill offering at mostly lower rates August 30, 2023 PSEi ends above 7,500, posts near five-year high October 8, 2024 Five more PPP projects to be awarded this year, early 2025 October 16, 2024

Foreign direct investments (FDI) in the Philippines fell in March as recession fears and slower global trade dampened investor sentiment, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

FDI net inflows declined by 30.7% to USD 548 million in March from USD 792 million a year earlier, data from the central bank showed.  These were 47.6% lower than USD 1.05 billion in February.

It was the lowest monthly FDI net inflow since USD 448 million in January.

Net Foreign Direct Investment“The decline resulted from lower net inflows across all major FDI components amid investor concerns over subdued global growth prospects,” the BSP said in a statement. 

Analysts attributed the decline in FDI net inflows to recession fears.

“The European Union has entered a technical recession already, which could affect companies’ interest in expanding,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message. “Likewise, conditions remain tight in export-driven economies such as Singapore.”

The gross domestic product (GDP) in the European Union fell by 0.1% in the first quarter after contracting by 0.1% a quarter earlier.

A country enters technical recession when it posts two straight quarters of economic contraction.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said investment pledges made in the past months likely haven’t materialized yet, causing the decline in FDI inflows.

BSP data showed nonresidents’ net investments in debt instruments of local affiliates plunged by 37.2% from a year earlier to USD 389 million in March.

Investments in equity and investment fund shares also dropped by 7.3% to USD 159 million.

Nonresidents’ net investments in equity capital, excluding reinvestment of earnings, fell by 11.7% to USD 94 million.

Equity capital placements inched down by 2.5% to USD 115 million, while withdrawals surged by 80.3% to USD 21 million.

The equity placements were mainly from Singapore, Japan and the United States. These were invested mostly in the manufacturing, information and communication, and real estate industries.

Reinvestment of earnings slipped by 0.1% to USD 65 million year on year in March.

For the first quarter, total FDI net inflows fell by 19.6% to USD 2.04 billion from USD 2.54 billion a year earlier.

Foreign investments in debt instruments dropped by 22.1% year on year to USD 1.58 billion.

Investments in equity and investment fund shares likewise declined by 9.9% to USD 463 million.

Net foreign investments in equity capital went down by 15.9% to USD 261 million. Equity capital placements inched up by 6.9% to USD 377 million, while withdrawals more than doubled to USD 115 million.

Most of these placements were from Japan, Singapore and the United States.

Reinvestment of earnings dipped by 0.7% to USD 202 million during the quarter.

“Even with lower net FDI in the first quarter, we remain hopeful that hard-earned structural reforms will eventually boost investments to the country,” Ms. Velasquez said.

The government last year amended the Public Service Act to allow companies in sectors such as telecommunications, airlines, railways and shipping to be fully owned by foreigners.

Other measures that seek to attract more foreign investments into the Philippines include changes to the Retail Trade Liberalization Act and Foreign Investment Act.

“Even if 2023 and the first half of 2024 will be driven by bleaker-than-expected investor sentiment, investment potential in the Philippines remains strong in the medium to long term,” Ms. Velasquez added. 

Mr. Mapa expects a turnaround in investment inflows in the coming months as the Philippine economy remains robust.

Economic output grew by 6.4% in the first quarter, slower than 8% a year ago. Still, it was within the government’s 6-7% target for the year.

The central bank expects FDI net inflows to reach USD 11 billion this year. — Keisha B. Ta-asan, Reporter

This article originally appeared on bworldonline.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up