Net foreign direct investments (FDI) in the Philippines fell 42.2 percent in September to $422 million from $731 million a year ago, the Bangko Sentral ng Pilipinas (BSP) said Monday.
The decline was attributed to lower inflows across all major FDI components, reflecting the impact of global uncertainties on investor sentiment.
“FDI declined on the back of persistent global economic uncertainties, which continued to affect investor decisions,” the BSP said in a statement.
Data showed that non-residents’ net investments in debt instruments decreased by 47.8 percent to $238 million from $456 million in September 2022.
Meanwhile, non-residents’ net investments in equity capital (other than reinvestment of earnings) and their reinvestment of earnings declined by 43.9 percent to $105 million from $187 million, and 9.9 percent to $79 million from $87 million, respectively.
Despite the monthly decline, net FDI inflows in the first three quarters of 2023 reached $5.9 billion, down 15.9 percent from $7.0 billion recorded in the same period last year.
The BSP clarified that its FDI statistics differ from the investment data published by other government agencies, such as the Philippine Statistics Authority (PSA), which are based on investment commitments and may not fully translate into actual inflows.
Net FDI inflows in the Philippines reached $9.4 billion in 2022, lower than the record $12 billion net inflows in 2021. The decline was attributed to sluggish global growth and high inflation.
The BSP expects net FDI inflows to reach $8.5 billion to $9 billion in 2023, supported by the continued implementation of reforms and the country’s strong economic fundamentals.