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FDI net inflows fell 37% to $5.1b in first nine months

Net inflows of foreign direct investments went down by 2.9 percent in September to $566 million from $582 million a year ago, pulled down by the adverse effects of the prolonged trade dispute between the US and China, the Bangko Sentral ng Pilipinas said Tuesday.

“However, the reversal of net equity capital investments from net outflows to net inflows mitigated the decrease in net investments in debt instruments,” the BSP said in a statement.

Non-residents’ net equity capital investments posted a 182-percent growth to $96 million in September from net equity capital withdrawals of $117 million in the same month last year as placements increased by 79.5 percent to $125 million from $69 million.

Top sources of equity capital placements during the month were Japan, Taiwan, the United States, Hong Kong, and the Netherlands. These funds went to financial and insurance, manufacturing and real estate.

The latest number brought the net inflows of FDIs in the first nine months to $5.1 billion, down 36.9 percent from $8.1 billion net inflows a year ago.

“The slowdown in inflows reflected the adverse effects of the prolonged trade disputes, which continued to affect global growth negatively and prompted foreign investors to hold off their investment plans in emerging markets including the Philippines, until global growth outlook improves,” the BSP said.

Non-residents’ net investments in debt instruments in the nine-month period declined by 32.6 percent to $3.7 billion from $5.5 billion.

Net equity capital investments decreased as placements dipped 45.7 percent to $1.2 billion from $2.3 billion, while withdrawals increased by 58.7 percent to $607 million from $382 million.

Net inflows of FDIs amounted to $9.802 billion in 2018 from a record $10.256 billion in 2018.

Topics: foreign direct investments , FDI net inflows , Bangko Sentral ng Pilipinas , BSP
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