Net inflows of foreign direct investments rose 7.1 percent in June to $481 million from $449 million a year ago despite the impact of the health crisis, the Bangko Sentral ng Pilipinas said Tuesday.
“This positive development was underpinned by the gradual reopening of advanced economies with investment interest in the Philippines, and the country’s sustained strong macroeconomic fundamentals, despite the COVID-19 pandemic,” the BSP said in a statement.
Data showed that net equity capital investments expanded to $173 million from $29 million a year ago, following the 137.6-percent increase in equity capital placements to $185 million from $78 million and the decline in withdrawals by 74.9 percent to $12 million from $49 million.
The bulk of the equity capital placements for the month came from Japan, the United Kingdom and the United States. These were invested mainly in manufacturing, human health and social work, financial and insurance and real estate industries.
Meanwhile, net investments in debt instruments fell 28.8 percent in June to $229 million from $321 million in June 2019. Reinvestment of earnings was also lower by 19.4 percent at $80 million compared to $99 million a year ago.
FDI net inflows in the first half reached $3 billion, down 18.3 percent from $3.7 billion in the same period last year.