Foreign direct investment (FDI) net inflows 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 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.
