BSP data: FDI net inflows hit $6.5B in October 2023

Investment inflows grew month-on-month in October but remained double-digits lower than the same month in the previous year, data released by the Bangko Sentral ng Pilipinas (BSP) on Wednesday showed.

Foreign direct investment (FDI) inflows for the month stood at $655 million, higher than the $422 million in September, but 29.6% lower than the $930 million recorded in October 2021.

The central bank attributed the annual decline to the 26.1% drop in net investments in debt instruments to $504 million from $682 million. Nonresidents’ net investments in equity capital slipped by 54.4% to $74 million, while reinvestment of earnings fell by 10.3% to $76 million.

Bulk of the equity capital placements for the month came from Japan, the United States, and Singapore, which were then directed mostly to the manufacturing, real estate, and the financial and insurance industries.

The latest figures brought the year-to-date net inflows to $6.533 billion, higher than the $5.878 billion in September, but 17.5% lower than the $7.921 billion in the comparable period of 2021.

“While FDI continued to record net inflows, the recent decline in levels reflect the adverse impact of persistent inflationary pressures and slowing global growth prospects on investor decisions,” the BSP said.

The cumulative inflows mostly came from Japan, the United States, Singapore, and Germany, which were then channeled into manufacturing, real estate, and the financial and insurance industries. — RSJ, GMA Integrated News