spot_img
28.6 C
Philippines
Friday, March 29, 2024

Foreign direct investments reached $9.2b in 11 months

- Advertisement -

Net inflows of foreign direct investments jumped 96 percent in November to $1.1 billion from $559 million a year ago, sustaining a growth trajectory despite the COVID-19 pandemic, latest data from the Bangko Sentral ng Pilipinas show.

The figure brought the total FDI net inflows in the first 11 months of 2021 to $9.2 billion, up 52.5 percent from $6.1 billion registered in the same period in 2020. They also surpassed the full-year target of $8 billion in net inflows.

“Behind this development was the 82.1-percent growth in non-residents’ net investments in debt instruments which climbed to $6.8 billion from $3.8 billion in the comparable period in 2020,” the BSP said in a statement.

Reinvestment of earnings rose 12.8 percent to $1 billion from $907 million recorded in the first 11 months of 2020.

Meanwhile, the growth in FDI inflows was moderated by the marginal contraction in non-residents’ net investments in equity capital by 1.2 percent to $1.4 billion.

- Advertisement -

“Nonetheless, it was noted that the two consecutive monthly growth in net equity capital investments in October and November helped narrow the cumulative contraction of this account for the first 11 months of 2021 to a single digit from the double-digit declines posted during the period July-September 2021,” the BSP said.

The bulk of the equity capital placements in the period came from Singapore, Japan and the United States. These were invested mostly in manufacturing; financial and insurance; electricity, gas, steam and air-conditioning; and real estate industries.

FDI net inflows in November rose on the back of the 109.3-percent upturn in non-residents’ net investments in debt instruments to $896 million from $428 million in the comparable month in 2020.

Non-residents’ net investments in equity capital other than reinvestment of earnings also climbed 78.8 percent to $118 million from $66 million in November 2020.

The BSP earlier revised the 2021 FDI net inflows target to $8 billion from $7 billion, taking into account the improving global economic outlook.

FDI net inflows reached $6.6 billion in 2020.

- Advertisement -

LATEST NEWS

Popular Articles