The net inflow of foreign direct investment (FDI) from January to July grew by 7.5 percent to $5.3 billion from $4.9 billion posted in the same period of last year, according to the Bangko Sentral ng Pilipinas.

FDI net inflows in July contributed $820 million, higher by 5.5 percent from $778 million recorded in the same month of 2023 as investments, both in terms of equities and debt instruments rose.

Investments in the debt market grew by 2.7 percent to $610 million from $594 million.

Reinvestment of earnings

Meanwhile, reinvestment of earnings jumped by 12.8 percent to $135 million from $120 million.

Net investments in equity capital excluding reinvestment of earnings grew faster by 16.8 percent to $76 million from $65 million.

From January to July, equity investments came mostly from the United Kingdom with a 48 percent share, followed by Japan with 34 percent, and the United States with 7 percent.

Most foreign investors placed equity funds in manufacturing firms with a 76 percent share, followed by real estate firms with 10 percent.

These groups of data were registered amid sustained robust consumption of goods and services among local households with a 4.6 percent growth in the first and second quarters of the year.

This was despite a high interest rate of 6.5 percent and inflation rates ranging from 2.8 to 4.4 percent.

Moving forward, Rizal Commercial Banking Corp. chief economist Michael Ricafort said businesses are seen to gain more profits as cheaper food prices free up some of the Filipinos’ household budgets.