BUSINESS

FDI ends July with $753-M inflow

Despite the expansion in the monthly FDI net inflows, cumulative figures for January to July 2023 settled at $4.7 billion, a decline of 14.7 percent

DT · Oct 11, 2023, 12:20 AM

Foreign direct investments rise by 35.7 percent in July 2023 putting the year’s figure until July at a $4.7 billion net inflow.(Photograph courtesy of BSP )

Foreign direct investment, or FDI, posted net inflows of $753 million in July 2023, 35.7 percent up from the $555 million a year ago.

The Bangko Sentral ng Pilipinas, or BSP, attributed the FDI growth to the 108.4 percent increase in nonresidents' net investments in debt instruments that increased to $575 million from $276 million.

This more than offset the decrease in nonresidents' net investments in equities capital (other than reinvestment of earnings) by 52.6 percent (to $65 million from $137 million) and their reinvestment of earnings by 20.1 percent (to $114 million from $142 million).

Japan, US top capital sources

By country of source, capital placements during the month came mostly from Japan, the United States, and Singapore. These investments were channeled primarily to the 1) manufacturing; 2) real estate; and 3) financial and insurance industries.

Despite the expansion in the monthly FDI net inflows, cumulative figures for January to July 2023 settled at $4.7 billion, a decline of 14.7 percent from $5.5 billion net inflows posted in the same period last year.

BSP said in a statement that FDI declined amid concerns over slowing global growth.