Net inflows of foreign direct investments (FDI) reached $789 million in August 2023, slightly lower than $792 million recorded in the same month last year.
“The marginal decline in FDI net inflows reflected the 7.8-percent contraction in nonresidents’ net investments in debt instruments to $537 million from $582 million in August 2022,” the Bangko Sentral ng Pilipinas (BSP) said in a statement Friday.
This was tempered partly by the expansion in nonresidents’ net investments in equity capital (other than reinvestment of earnings) by 13.3 percent to $36 million from $31 million, and their reinvestment of earnings by 21.4 percent to $217 million from $179 million, it said.
Equity capital placements came mostly from Japan, the United States and Singapore, and these were channeled primarily to the manufacturing, wholesale and retail trade and information and communication industries.
Meanwhile, FDI net inflows in the first eight months amounted to $5.5 billion, down by 12.9 percent from $6.3 billion a year ago.
“The continued FDI net inflows reflect the country’s strong macroeconomic fundamentals. Nonetheless, the recorded slowdown may be due largely to investor concerns following the sustained uncertainty surrounding the global economy,” the BSP said.
The BSP data on FDIs refer to investment by a nonresident direct investor in a resident enterprise, whose equity capital in the latter is at least 10 percent as well as investment made by a nonresident subsidiary/associate in its resident direct investor. FDIs can be in the forms of equity capital, reinvestment of earnings and borrowings.
The data cover actual investment inflows, that are different from the approved foreign investments data published by the Philippine Statistics Authority which represent investment commitments, which may not necessarily be realized fully in a given period.
