Net inflow of foreign direct investments in October jumped 33.7 percent to a six-month high of $672 million from $502 million a year ago, the Bangko Sentral ng Pilipinas said Friday.
“This was mainly on account of the expansion in non-residents’ net investments in debt instruments issued by local affiliates by 60 percent to $534 million from $334 million in 2018,” the BSP said in a statement.
Net inflows of equity capital, meanwhile, slowed down to $58 million from $98 million in October 2018, following the decline in equity capital placements coupled with the increase in withdrawals.
Equity capital infusions during the month came from the United States, South Korea and Japan.
These were invested in real estate, financial and insurance and manufacturing.
The latest figures brought the net FDI in the first 10 months to $5.8 billion, lower by 32.8 percent from $8.6 billion a year ago.
“The lower FDI net inflows reflect subdued investor sentiment due to the continued sluggish global economic activity,” the BSP said.
The top country sources of equity capital placements in the 10-month period were Japan, the US, Singapore, China and South Korea. These were invested in financial and insurance, real estate, and manufacturing.
The BSP in November revised downward the net FDI projection in 2019 to $6.8 billion from the earlier projection of $9 billion, taking into account the latest global developments.
But for 2020, the BSP expects net FDI to reach $8.8 billion.