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Philippines’ FDI outlook remains weak for rest of 2026

20 July 2026
in Business
Reading Time: 5 mins read
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Philippines’ FDI outlook remains weak for rest of 2026
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Buildings are enveloped in thick smog in Quezon City in this file photo. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Katherine K. Chan, Reporter

THE PHILIPPINES might continue to struggle to attract foreign direct investment (FDI) for the remainder of 2026 as lingering geopolitical risks and domestic governance concerns keep investors cautious, analysts said. 

“We may have to grapple with subdued FDI growth for the rest of the year,” Marco Antonio C. Agonia, an economist at the University of Asia and the Pacific (UA&P), told BusinessWorld in an e-mail. “The domestic economy is still vulnerable to external shocks and has thus far not yet resolved its governance issues.”

Mr. Agonia noted higher borrowing costs have also stifled investment growth, which could keep the Philippines behind its neighbors with more conducive business environments and investment climates. 

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