Net inflow of foreign direct investments in 2019 declined 23 percent to $7.7 billion from $9.9 billion in 2018, as investors reacted negatively to global uncertainties during the period, the Bangko Sentral ng Pilipinas said Tuesday.
The net FDI for the year, however, surpassed the revised $6.8-billion target earlier set by the government.
“Notwithstanding the country’s sound macroeconomic fundamentals, global uncertainties dampened investor sentiment during the year,” th BSP said in a statement.
BSP earlier said the lingering trade tensions between the US and China had been negatively impacting on investors’ sentiment globally.
Data show net investments in debt instruments in 2019 dropped 23.2 percent to $5.2 billion. Similarly, net equity capital investments declined 38.2 percent to $1.4 billion.
Gross equity capital investments for the year, which originated mainly from Singapore, Japan, and the United States, were channeled mostly to financial and insurance, real estate, electricity, gas, steam and air-conditioning supply, and manufacturing industries.