Foreign direct investment (FDI) sustained its net inflows in May, recording a 64.1 percent expansion year-on-year to $742 million from the $452 million in May 2021.

On a cumulative basis, FDI net inflows for the period January-May rose by 18.8 percent to $4.2 billion from the $3.5 billion net inflows posted in the same period last year.

The year-to-date growth was mainly on account of the increase in non-residents’ net investments in debt instruments, which muted the decline in net equity capital placements (other than reinvestment of earnings).

In May, FDI grew following net inflows from non-residents’ net investments in debt instruments and equity capital of their local affiliates. By country of source, equity capital placements came largely from Japan, the United States, Singapore and the Netherlands.

These were invested mostly in manufacturing, real estate, information and communication; and transportation and storage industries. BSP