FDI net inflows rise to $826 million in December 2023
Foreign direct investment (FDI) net inflows sustained its growth momentum in December 2023, increasing by 29.9 percent year-on-year to reach $826 million from the $636 million net inflows in December 2022.
FDI increased mainly on the back of the 86.2 percent growth in nonresidents’ net investments in debt instruments to $527 million from $283 million in the comparable month in 2022.
Similarly, reinvestment of earnings improved slightly by 4.1 percent to $91 million from $87 million.
Meanwhile, non-residents’ net investments in equity capital (other than reinvestment of earnings) declined by 21.7 percent to $208 million in December 2023 from $266 million a year ago.
Bulk of the equity capital placements during the reference month came from Japan with investments directed mostly to the manufacturing industry.
The full-year 2023 FDI net inflows reached $8.9 billion, or a contraction of 6.6 percent, from the $9.5 billion net inflows recorded in 2022.
Notwithstanding the country’s sound macroeconomic fundamentals, concerns over subdued global economic growth and geopolitical risks continued to weigh on investors’ investment plans. Bangko Sentral ng Pilipinas
