Foreign direct investments (FDI), characterized by long-term commitments and the creation of job opportunities for Filipinos, are projected to reach $9.5 billion this year.

Based on the latest projections by the Bangko Sentral ng Pilipinas (BSP), the initial forecast of $9 billion for the year has been revised upward in the second quarter.

BSP Deputy Governor Francisco G. Dakila Jr. said in a statement that the new FDI forecast was prepared to enhance the accuracy of second-quarter balance of payments forecasts.

“We were initially projecting a $9 billion net FDI position in the first quarter. We have upgraded that to $9.5 billion. And actually, this is still very conservative, as in 2023, we have already achieved $8.9 billion,” Dakila said.

He stated that the BSP revised the net FDI forecast primarily due to positive global economic growth expectations and the government's commitment to achieving its growth objectives.

These objectives include maintaining economic growth at an average of six percent to seven percent in terms of gross domestic product (GDP), while keeping inflation below four percent this year to ensure price stability.

FDI posted an increase in the first quarter of this year, by 90 percent in January to $907 million, followed by a 29 percent increase in February to $1.4 billion, and a further 42 percent increase in March to $686 million.

In 2023, FDI registered a decline of over six percent, reaching only $8.9 billion, marking the second consecutive annual decrease.

From 2019 to February 2024, Japan emerged as the second-largest source of foreign direct investments after economies in the Association of Southeast Asian Nations (ASEAN).

Tokyo contributed an average share of 28.9 percent to net equity, excluding reinvestment of earnings during this period. ASEAN countries accounted for the largest share at 39.1 percent.

“We are very happy that Japan is both recognizing the potential of the country and supporting Philippine economic growth,” Dakila said.