FDI posts $789 million net inflows in August
Foreign direct investments (FDI) posted net inflows of $789 million in August, slightly lower than the $792 million net inflows recorded in the same month last year.
The marginal decline in FDI net inflows reflected the 7.8 percent contraction in non-residents’ net investments in debt instruments to $537 million from $582 million in August 2022.
This was tempered partly by the expansion in non-residents’ net investments in equity capital (other than reinvestment of earnings) by 13.3 percent to $36 million from $31 million, and their reinvestment of earnings by 21.4 percent to $217 million from $179 million.
During the reference month, equity capital placements emanated mostly from Japan, the United States, and Singapore. These were channeled primarily to the manufacturing; wholesale and retail trade; and information and communication industries.
The year-to-date FDI net inflows amounted to $5.5 billion, a 12.9 percent decline from the $6.3 billion recorded in the same period last year.
The continued FDI net inflows reflect the country’s strong macroeconomic fundamentals. Nonetheless, the recorded slowdown may be due largely to investor concerns following the sustained uncertainty surrounding the global economy. BSP
