The Department of Finance downplayed the 4.4-percent decline in net foreign direct investments last year, saying it is just “temporary” but admitted there must be vital reforms to lure more foreign investors in the country.
“The FDI decline in the Philippines in 2018 mirrors the global FDI decline during the past two years. In 2017, it dropped 6.5 percent to $1.9 trillion. In the first half of 2018, it dropped by a heftier 44 percent to just $432 billion,” the DoF said in an economic bulletin released Wednesday.
The DoF said the decline was due to slowdown in the world economy brought about by US-China trade war and Brexit.
Citing a World Bank study, the DoF said foreign capital should be attracted to enhance more competition and efficiency in the economy.
“The drop in 2018 FDI is just a temporary phenomenon brought about by the uncertain world economic environment. FDI flows will recover when world conditions are better. Meanwhile, the Philippines should implement reforms for a better investment environment,” the DoF said.