FDI registers $422 million net inflows in September
Foreign direct investment (FDI) registered $422 million net inflows in September, albeit lower by 42.2 percent than the $731 million recorded in the same month in 2022
This resulted as all major FDI components posted lower net inflows during the month. In particular, non-residents’ net investments in debt instruments decreased by 47.8 percent to $238 million from $456 million in September 2022.
Likewise, non-residents’ net investments in equity capital (other than reinvestment of earnings) and their reinvestment of earnings declined by 43.9 percent to $105 million (from $187 million) and 9.9 percent to $79 million (from $87 million), respectively.
Non-residents’ equity capital placements in the country during the reference month came mostly from Japan, Singapore, and the United States.
These were invested largely in the financial and insurance;construction; and manufacturing industries.
For the first three quarters of 2023, FDI net inflows reached $5.9 billion, 15.9 percent lower than the $7 billion net inflows recorded in the comparable period last year.
FDI declined on the back of persistent global economic uncertainties, which continued to affect investor decisions. BSP
