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Philippines' FDI outlook weak amid governance concerns and geopolitical risks

The Philippines faces weak foreign direct investment (FDI) prospects for the remainder of 2026 due to geopolitical risks, domestic governance concerns, and higher borrowing costs that have deterred investor confidence. FDI inflows plummeted 58.8% year-on-year in April 2026 to $250 million, marking the lowest monthly level in nearly a decade, with analysts warning that sustained FDI slowdown could undermine capital formation, job creation, infrastructure development, and long-term economic growth.