Net inflows of foreign direct investments amounted to $523 million in September, down by 12.3 percent from $596 million a year ago, snapping four consecutive months of double-digit year-on-year growths, the Bangko Sentral ng Pilipinas said Thursday.
The BSP said in a statement the two-week modified enhanced community quarantine in Metro Manila and surrounding areas in the first half of August "might have dampened investor sentiment on prospects of the economy’s re-opening."
"The decline in FDI net inflows during the month was largely due to the 14.3-percent drop in non-residents’ net investments in debt instruments, which amounted to $362 million from $423 million in September 2019," the BSP said.
Reinvestment of earnings dipped 19.7 percent in September to $62 million from $77 million in the same month in 2019.
"The decline in FDI net inflows were mitigated partly by the 2.5-percent growth in non-residents’ net investments in equity capital, which reached $99 million from $96 million in September last year," it said.
The decrease in placements of equity capital by 8.6 percent (to $114 million from $125 million) was slower compared to the decline in withdrawals which contracted by 46.5 percent (to $15 million from $28 million).
Equity capital infusions during the month emanated mainly from Japan, the United States and Singapore. These placements were channeled largely to manufacturing, real estate and financial and insurance industries.
FDI net inflows went down by 8.6 percent in the first three quarters to $4.8 billion from the $5.3 billion in the same period last year.
"The decline in FDI inflows reflected the worldwide cautious investment climate, following the continued effects of the prolonged COVID-19 health crisis on the global economic outlook," the BSP said.