Net inflows of foreign direct investments fell 14.6 percent in the first two months from a year ago as the elevated global inflation impacted investors’ sentiment, the Bangko Sentral ng Pilipinas said Wednesday.
The BSP said in a statement FDI net inflows from January to February decreased to $1.5 billion from $1.8 billion in the same period last year.
“All major FDI components yielded lower net inflows as foreign investors remained cautious amid persistent and broadening global inflation,” the BSP said.
Data showed that FDI net inflows in February grew by 13 percent to $1.0 billion from $926 million a year ago. “The increase in FDI [in February] was due to higher non-residents’ net investments in debt instruments, notwithstanding lower net equity capital placements and reinvestment of earnings,” it said.
The bulk of the equity capital placements for the month came from Japan, the United States, and the Cayman Islands. They were channeled mostly to manufacturing; real estate; electricity, gas steam and air conditioning supply; and financial and insurance industries.