Net inflows of foreign direct investments rose 6.3 percent in October 2022 to $923 million from $868 million a year ago on investors’ sustained confidence in the country’s macroeconomic fundamentals, data from the Bangko Sentral ng Pilipinas show.
This brought the net inflows from January to October 2022 to $7.6 billion, down 8.3 percent from $8.3 billion in the same period in 2021.
“Despite the global economic headwinds, FDI net inflow rose [in October 2022] on account of the increase in non-residents’ net investments in debt instruments and equity capital of their local affiliates,” the BSP said in a statement.
It said that by country source, equity capital placements came largely from Japan, the United States and Singapore. The investments were channeled mainly to financial and insurance, manufacturing and real estate sectors.
The BSP revised lower the FDI net inflow projection for 2022 to $8.5 billion from the previous estimate of $10.5 billion, taking into account the uncertain global trade environment. These headwinds include the more subdued global growth projection, higher inflation, continuing war between Russia and Ukraine and the COVID-19 pandemic.
FDIs hit an all-time high of $12.4 billion in 2021, breaching the previous record of $10.3 billion in 2017.
The BSP statistics on FDI are compiled based on the Balance of Payments and International Investment Position Manual, 6th Edition.
FDIs include investment by a non-resident direct investor in a resident enterprise, whose equity capital in the latter is at least 10 percent, and investment made by a non-resident subsidiary/associate in its resident direct investor. They are in the forms of equity capital, reinvestment of earnings and borrowings.
The BSP FDI statistics are distinct from the investment data of other government sources. BSP’s FDI covers actual investment inflows, while the approved foreign investments data published by the Philippine Statistics Authority are sourced from investment promotion agencies and represent investment commitments, which may not necessarily be realized fully, in a given period.
