FDI net inflow down to $797M in August — BSP data

Foreign direct direct investments yield net inflow of $797 million in August, albeit lower than the net inflow of $987 million seen in the same month last year, data released by the Bangko Sentral ng Pilipinas showed. pic.twitter.com/IgLOnWOGXq

— Ted Cordero (@Ted_Cordero) November 10, 2022

Foreign direct investments (FDI) into the Philippines yielded net inflows in August, albeit lower than in the same period last year amid global growth concerns, data released by the Bangko Sentral ng Pilipinas (BSP) on Thursday showed.

FDI net inflows during the period stood at $797 million, down 19.2% from $987 million in August 2021.

This is the fourth straight month that FDI net inflows have declined.

FDIs are made by a non-resident direct investor or foreigner in a local enterprise or investment made by a foreign subsidiary or associate in its local direct investor.

FDIs can be in the form of equity capital, reinvestment of earnings, and borrowings.

The BSP said the slowdown in FDI may be attributed to concerns over weakening global growth prospects, particularly with the moderating demand and policy tightening in major economies.

“In August 2022, FDI net inflows decreased as all major FDI components posted lower net inflows, particularly non-residents’ net investments in debt instruments of their local affiliates,” the central bank said.

The BSP said equity capital placements during the month came mostly from Japan and the United States.

The said investments were channeled largely to the manufacturing; real estate; and information and communication industries.

Year-to-date, FDI net inflows amounted to $5.9 billion in January to August, down 13% from $6.8 million posted in the same period last year. — RSJ, GMA Integrated News