Foreign direct investment into Philippines falls 14.5 percent in August
Date
11/11/2024 7:20:12 AM
(MENAFN) Foreign direct investment (FDI) into the Philippines decreased by 14.5 percent year on year in August, totaling 813 million U.S. dollars, according to a report from the Philippine central bank, Bangko Sentral ng Pilipinas (BSP), released on Monday. The decline was primarily attributed to a significant drop in nonresidents' net investments in debt instruments, which fell by 21.6 percent to 529 million dollars, down from 675 million dollars the previous year. The BSP also noted a decrease in nonresidents' reinvestment of earnings, which fell by 9.4 percent to 217 million dollars, compared to 240 million dollars in August 2023.
However, there was some positive movement in nonresidents' net investments in equity capital, excluding reinvested earnings, which saw a substantial 83.6 percent increase. These investments rose to 66 million dollars in August 2024, up from 36 million dollars in the same month last year. The equity capital placements were primarily sourced from Japan and the United States and were directed toward key sectors such as manufacturing, real estate, and electricity, gas, steam, and air-conditioning supply industries.
On a cumulative basis, net FDI inflows into the Philippines from January to August 2024 showed growth. The BSP reported a 3.9 percent increase, with net inflows rising to 6.1 billion dollars, compared to 5.8 billion dollars during the same period in 2023. This overall increase in FDI suggests that while August experienced a decline, the country's foreign investment landscape remains positive in the broader context of the year.
The rise in cumulative FDI indicates ongoing investor confidence in certain sectors of the Philippine economy, particularly those receiving substantial equity capital from international investors. Despite the setback in some areas, the overall trend reflects resilience and potential for growth in foreign investments in the Philippines.
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