After contracting for four straight months, the Philippines recorded a net inflow of $753 million in foreign direct investments (FDI) in July, surging by 35.7 percent year-on-year thanks to a doubling of foreign investments in debt instruments to $575 million during the month.
The July results, however, brought the January-July tally to just $4.66 billion, a decrease of 14.7 percent from $5.47 billion in the same period of 2022.
The seven-month result for 2023 meant a worsening from the 0.9-percent decrease recorded in the comparative period last year.
Slowing global growth
In a statement, the Bangko Sentral ng Pilipinas (BSP) said year-to-date FDI net inflows “declined amid concerns over slowing global growth.”
In July alone, the surge in net FDI inflow meant a reversal from the 53.1-percent plunge recorded in the same month a year ago.
The BSP said the growth in FDI last July was mainly on account of the 108.4-percent increase in nonresidents’ net investments in debt instruments, to $575 million from $276 million.
This more than offset a 52.6-percent drop in nonresidents’ net investments in equity capital other than reinvestment of earnings, which settled at $65 million from $137 million.
Nonresident’s reinvestment of earnings also shrank 20.1 percent to $114 million from $142 million.
Most of the inflows that went into equity capital placements came from Japan, the United States and Singapore.
Real estate investments
These were invested into companies that were engaged in manufacturing, real estate, and financial and insurance industries.
In September, Finance Secretary Benjamin Diokno said the Marcos investor roadshows had contributed to billions worth of investment pledges, including the P800 billion made by parties based in Singapore and Indonesia; P229 billion in pledges from the United States of America; P157 billion in approved foreign investments from Germany; P293.1 million approved investments from the United Kingdom.
There were also P3.8 billion approved foreign investments, $600 million infrastructure investment pledges, and P708.2 billion investment deals from Japan.
Your subscription could not be saved. Please try again.
Your subscription has been successful.
“Personally engaging with top level investors increases the Philippines’ visibility in the international arena, especially in untapped markets,” Diokno said. INQ
Denial of responsibility! My Droll is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
