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FDI up 52% in July

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Sustaining its double-digit expansion month-ago, the country’s foreign direct investments or FDI yielded net inflows in July 2021, the Bangko Sentral ng Pilipinas (BSP) said.

Data from the BSP showed the latest FDI print at $1.26 billion, a 52 percent improvement from the listed $831 million net inflows in July 2021.

Still, the latest figure was notably higher than the $833 million in June 2021.

“The increase in FDI inflows in July 2021 was due mainly to the 6.1 percent growth year-on-year in investments in debt instruments to $1.1 billion from $667 million,” the BSP explained.

“Similarly, reinvestment of earnings rose by 87.1 percent to $155 million from $83 million,” it added.

On the other, non-residents’ net investments in equity capital dropped by 58.3 percent to $34 million in July 2021 from the recorded $81 million in July 2020.

According to the central bank, equity capital withdrawals during the month went up by a hefty 634.7 percent to $57 million from the recorded $8 million in the same comparable period.

Bulk of the equity capital placements during the month came largely from Japan, the US and Hong Kong. These were then placed heavily in manufacturing and real estate along with financial and insurance industries.

On a cumulative basis, FDI in the first seven months of the year was 43.1 percent higher with $5.6 billion from only $3.9 billion in the same period in 2020.

The country’s FDI includes investments by a non-resident direct investor in a local enterprise, whose equity capital in the latter is at least 10 percent as well as investments of a foreign subsidiary in its local direct investor.

The BSP earlier casted a lower FDI forecast for the year with $7.5 billion from the previous $7.8 billion outlook.

Nevertheless, the central bank eyes further support from domestic economic activity beginning in the second quarter of the year.

 

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