FDI net inflows down to $813M in August

Foreign direct investments (FDIs) declined in August on the back of lower inflows to debt instruments during the period, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.

The August FDI — a key source of jobs and capital for the local economy — posted a net inflow of $813 million in August, down from $820 million in July and 14.5% lower than the $951 million during the same month last year.

The central bank attributed the decline to the 21.6% contraction in nonresidents’ net investments in debt instruments to $529 million from $675 million.

Net equity investments for the month were recorded at $66 million, lower than the $76 million in the previous month but higher than the $36 million in August 2023.

“These equity capital placements emanated largely from Japan and the United States and were mostly invested in the manufacturing, real estate, and electricity, gas, steam, and air-conditioning supply industries,” the BSP said.

Reinvestment of earnings stood at $217 million, up from $135 million in July and $240 million the same month last year.

This brought the year-to-date FDI net inflow to $6.068 billion, higher than the $5.839 billion in the comparable period of 2023. —KBK, GMA Integrated News