FDI net inflows sank to 14-month low in July — BSP data

Net inflows of foreign direct investments (FDIs) into the Philippines fell to a 14-month low in July, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday revealed.

Central bank data showed that FDI net inflows declined for the third straight month to $460 million in July. This is the lowest since the $455-million net inflows in May 2021.

The latest reading compares with the $471-million recorded in June, and the $1.292-billion inflows recorded in the same month of last year.

FDI is a cross-border investment of an overseas resident having control or a significant degree of influence on the management of an enterprise that resides in the Philippines.

“In July 2022, FDI net inflows decreased due largely to the lower non-residents’ net investments in debt instruments of their local affiliates. This decrease more than offset the growth in their net investments in equity capital,” the BSP said in an accompanying statement.

Equity capital infusions for the month came mostly from Singapore, Japan, and the United States, which were then channeled mainly into the construction, manufacturing, and real estate industries.

Year-to-date net inflows stood at $5.101 billion, lower than the $5.795-billion net inflows recorded in the first seven months of 2021.

President Ferdinand “Bongbong” Marcos Jr. last month headed to the United States for a working trip, which Malacañang said could generate close to $4-billion worth of investments. — RSJ, GMA News