Bangko Sentral ng Pilipinas said on Thursday, October 10, that the country’s foreign direct investments (FDIs) increased in July as investor sentiments improved.
Data from the BSP showed that the country received $820 million in net FDIs in July 2024, 5.5 percent higher than the net inflows worth $778 million in July 2023.
For the period January to July, the FDI net inflows reached $5.3 billion, which is 7.5 percent more than the $4.9 billion that came in during the same period in 2023.
The central bank defines FDI as an investment made by a foreign direct investor in a local enterprise, where the investor holds at least 10 percent equity, or as an investment by a foreign subsidiary in its resident direct investor. FDI can be equity capital, reinvested earnings, and borrowings.
The BSP reported a 2.7 percent year-on-year increase in foreigners’ net investments in debt instruments to $610 million from $594 million last year.
Additionally, non-residents’ reinvested earnings and net equity capital investments grew 12.8 percent to $135 million from $120 million, and 16.8 percent to $76 million from $65 million, respectively.
The central bank noted that most equity capital placements in July 2024 originated from Japan, the United States, and Singapore.
“The improvement in FDI was driven by higher net inflows across all components,” BSP said.
“These investments were channeled mainly to the manufacturing and real estate industries,” BSP added. (TCSP)
