Net inflows of foreign direct investments slowed 3.9 percent in June to $484 million from $503 million a year ago as global uncertainties impacted investors’ sentiments, the Bangko Sentral ng Pilipinas said Monday.
The BSP said in a statement the decline was led by the slowdown in non-residents’ net investments in equity capital (other than reinvestments of earnings) and their reinvestment of earnings by 11.8 percent from $126 million to $111 million, and by 26.8 percent from $122 million to $89 million, respectively.
“The slowdown in FDI may be due largely to investor concerns over weak growth prospects amid persistent global uncertainties,” the BSP said.
FDI net inflows also decreased 20.4 percent in the first six months to $3.9 billion from $4.9 billion a year earlier.
BSP statistics on FDI include investments by non-resident direct investors in a resident enterprise, whose equity capital in the latter is at least 10 percent. It also includes investments made by non-resident subsidiary/associates in its resident direct investor.
FDIs are in the forms of equity capital, reinvestment of earnings and borrowings. Julito G. Rada